Blockchain.com has launched crypto-backed loans globally to allow users to borrow digital assets without selling them.
The product allows clients to use Bitcoin, Ethereum, and USDC as collateral to access liquidity for large expenses, including real estate purchases, business investments, tax planning, and other financial needs. Blockchain.com said that loan interest rates will start from as low as 1.9% per annum, positioning the offer among the more competitive offerings in the cryptocurrency lending market.
The launch expands Blockchain.com’s consumer and high-net-worth business and comes as the crypto-backed lending market exceeds $70 billion. The company said the product is available globally and is designed for large crypto holders seeking competitive pricing, higher borrowing capacity, and a premium customer experience.
CEO and founder Peter Smith said that cryptocurrency-backed lending is one of the most requested products on Blockchain.com’s platform, adding that the company plans to compete aggressively in this space.
Smith said Blockchain.com is not entering the market from a strong start due to its existing liquidity, infrastructure, risk management and customer service capabilities. The company said these tools already support institutional and high-net-worth customers, and will be made available to a broader user base in the future.
This product provides long-term holders with a way to access liquidity while maintaining exposure to the asset. Instead of selling cryptocurrency to raise cash, users can pledge collateral and borrow against it, although permitted uses may vary by jurisdiction.
Blockchain.com also plans to expand into loan transfers for wealthy individuals. The company said it aims to use blockchain infrastructure to make cryptocurrency-backed credit a more competitive alternative to traditional borrowing products.
This launch further propels Blockchain.com to become a financial hub for crypto users more broadly. The company operates in more than 70 jurisdictions and claims to have processed more than $1.2 trillion in transactions.
