Beijing-based BabelFinance, which previously did business as BabelBank, has issued a statement stating that cryptocurrency-backed loans are expanding. Since starting in 2018, BabelFinance has founded more than $124 million in cryptocurrency-backed loans. According to a company note, BabelFinance expects to reach $1 billion in issued loans by the end of the next upsurge of cryptocurrencies.
BabelFinance is regulated in Hong Kong with a ‘small Internet lending license in China and a commercial lender license in Hong Kong through trading partners’.
BabelFinance says it is also working vigorously to obtain cooperation with a Chinese commercial bank.
Babel Finance offers services for investors in cryptocurrency, cryptocurrency miners, and cryptography institutions. It provides loans in stable currencies, secured by Bitcoin deposits and hopes to soon include Ethereum, Litecoin, BCH, XRP, and Stellar coins. Users can also transfer their cryptoactives to BabelFinance and generate interest through loans.
BabelFinance has partnered with F2Pool, Poolin, Cobo, Onchain, Genesis Capital, Altonomy, OSL, and says it is adding many more partners this month.
Chinese speculators are driving interest in the service, says BabelFinance, which is interesting because the cryptocurrency market is very controlled in the Asian country.
Babel Finance says it is improving its services to offer cardholders, cryptocurrency-backed loans, hedging tools, interest-bearing cryptocurrency deposits, recurring investment plans and ‘Babel Triple’, a low-cost, easy-to-use margin operator that provides up to triple leverage.
Institutional partners will have access to large OTC transactions.
In recent months, we have seen a dramatic increase in speculative consumer and institutional lending. It is clear that in China and other parts of the world, anticipation is being built for higher cryptocurrency prices. Said Flex Yang, founder, and CEO of BabelFinance.
Investors in Babel Finance include ZhenFund, Lightspeed China Partners, and NEO Global Capital.
Yang believes that cryptocurrencies have increased again and in this regard has indicated the need for tools to support widespread adoption and guarantee institutions liquid funds to continue accelerating the development of their projects.