Pawnhub, a crypto- lending platform is the first to receive a license for the firm to increase its crypto-lending services in the country by the Hong Kong Government. After receiving the permit, the firm is now trying to tie up with a leading U.S based cryptocurrency custodian so that they can then provide insurance to its client’s Bitcoin Assets all over the world, up to $100 million.
The press release notes :
“Crypto lending is fast becoming an integral part of the crypto ecosystem with PawnHub being the first regulated crypto lending firm to be based in Asia; home to some of the world’s biggest cryptocurrency nations, such as South Korea, Japan, China, Hong Kong and Singapore. The innovative business model of PawnHub brings to the Bitcoin community the best of both worlds, by allowing them to retain ownership of their crypto assets while having immediate access to liquidity.”
Crypto lending is rapidly turning into a pivotal part of the crypto ecosystem, and Pawnhub’s recent recognition is another testament to the fact. Pawnhub has its roots in some of the biggest crypto nations such as South Korea and Singapore.
Although cryptocurrencies have been around for a decade now, the loans and bonds are barely getting started in the crypto-space, as major financial instruments persisted with fiats for a long duration even after cryptocurrencies came into the scene.
Reason for this is that cryptocurrencies are under-leveraged, $200 billion is their estimated value, and only 2% of debt-to-asset ratio they carry. There’s massive untapped potential in the crypto lending world, which would be exploited hopefully in days to come.
What Separates Pawnhub From The Rest?
Pawnhub’s business model is a win-win situation for the Bitcoin community by helping them be in command of their crypto assets and also offering immediate liquidity. The customer has the option now to transfer their loans into other assets. Pawnhub’s approval was maybe just a matter of time, given that the Securities and Futures Commission (SFC), made an announcement which carried the details of a new licensing scheme for virtual asset exchanges. The company also fired a warning shot to crypto-providers who targets Hong Kong citizens illegally, as they lack the required paperwork.