The Mercado Bitcoin (MB), the largest digital asset platform in Latin America, is entering the secured loan segment and is launching the credit product with crypto collateral. The new feature will soon be available to MB and MB Pay customers. Considering the R$5 billion in custody that customers hold with MB, the product has the potential to grant over R$1 billion in credit.
The assets used as collateral for the credit will be the cryptocurrencies allocated on the platform. In this sense, consumers can request up to 30% of the value they have invested in MB for broker analysis. The solution is competitive, as consumer loan rates can reach 9.45% per month in traditional products, while MB offers reduced interest rates starting from 1.4% per month.
The opportunity allows investors not to have to liquidate strategic allocations in digital assets, which usually have above-average returns compared to traditional investments. At the same time, they can repay the loan with minimal fees.
The credit is for general use, allowing customers to use it for purchasing crypto assets on the platform for higher returns, withdrawing in reais for day-to-day operations financing, or replacing more expensive credit lines. Thus, customers can have a monthly income through their investments, which remain active, while having a financing line with more accessible rates.
“We always saw credit products as an area that could be significantly enhanced by blockchain technology. With collateralized crypto lending, we are able to offer greater efficiency and reduced costs for customers. This product allows customers to leverage themselves to take advantage of market opportunities without having to dispose of their assets, for example,” says André Gouvinhas, CFO of Mercado Bitcoin.
“Crypto collateralized credit 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 interference. This increases security and reduces the risk and cost of the operation, resulting in more accessible credit for the end customer,”
Credit analysis is simplified, without the need for a financial history, making the process accessible to a wider range of credit takers. The first operation was conducted in Proof of Concept (POC) format at the end of July 2024. The modality is available on the MB website, at this link.
