The Bitcoin Market (MB), largest digital asset platform in Latin America, enters the secured loan segment and is launching the crypto collateral credit product. The novelty will be available soon for MB and MB Pay customers. Considering the R$5 billion in custody that clients have with MB, the product has the potential for credit granting of over R$1 billion.
The assets owned used as collateral for the credit will be the cryptocurrencies allocated on the platform. In this sense, consumers will be able to request up to 30% of the amount they have invested in the MB for analysis by the brokerage. The solution is competitive, once consumer loan rates can reach 9,45% per month in traditional products, while MB offers reduced interest starting from 1,4% per month.
The opportunity allows investors not to have to divest from strategic allocations in digital assets, that usually have average returns above traditional investments. Parallely, they can pay off the loan with minimal rates
The credit is for free use, can be used by customers to purchase crypto assets on the platform and achieve higher returns, withdrawal in reais for financing day-to-day operations, or replacement of more expensive lines of credit. Thus, clients can have a monthly income through their investments, that remain active, while they have a line of financing with more accessible rates
"We have always seen the credit product as an area that could be significantly improved by blockchain technology". With collateralized loans in crypto, we are able to offer greater efficiency and reduced costs for clients. This product allows customers to leverage themselves to take advantage of market opportunities without having to sell their assets, for example, affirms André Gouvinhas, CFO of Mercado Bitcoin
"Collateralized credit in crypto is just the first step towards what we will see with the implementation of DREX and the increase in tokenized operations". The programmability of money allows for automatic on-chain settlement, without the need for human intervention. This increases safety and reduces the risk and cost of the operation, resulting in more accessible credit for the end customer
The credit analysis is simplified, without the need for a financial history , making the process accessible to a wider range of borrowers. The first operation was carried out in the form of a Proof of Concept (POC) at the end of July 2024. The modality is available on the MB website, in this link.
