Mercado Bitcoin (MB), the largest digital asset platform in Latin America, is entering the secured loan segment and is launching a crypto-collateralized credit product. The new feature will be available soon for MB and MB Pay customers. Considering the R$5 billion in custody that clients hold with MB, the product has the potential to grant more than R$1 billion in credit.
The assets owned and used as collateral for the credit will be the cryptocurrencies allocated on the platform. In this regard, consumers may request up to 30% of the amount they have invested in MB for the broker's analysis. The solution is competitive, as consumer loan rates can reach 9.45% per month on traditional products, while MB offers reduced interest rates starting at 1.4% per month.
The opportunity allows investors not to have to divest from strategic allocations in digital assets, which typically have an average return above traditional investments. Meanwhile, they manage to amortize the loan with minimal rates.
The credit is for free use, allowing clients to purchase crypto assets on the platform and achieve higher returns, withdraw in reais for daily operations financing, or replace more expensive credit lines. Thus, clients can have a monthly income through their investments, which remain active, while they have a financing line with more affordable rates.
“We have always seen credit products as an area that could be significantly improved by blockchain technology. With crypto-collateralized lending, we are able to offer greater efficiency and reduced costs to customers. This product allows customers to leverage themselves to take advantage of market opportunities without having to sell their assets, for example,” says André Gouvinhas, CFO of Mercado Bitcoin.
“Crypto-collateralized credit is just the first step toward what we will see with the implementation of DREX and the rise of tokenized operations. The programmability of money allows for automatic settlement on-chain, without the need for human intervention. 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 broader 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.
