MB enters the loan modality and launches credit with collateral in crypto

Mercado Bitcoin (MB), the largest digital asset platform in Latin America, enters the secured loan segment and is launching the credit product with crypto collateral. The novelty will be available soon for MB and MB Pay customers. Considering the R$5 billion of custody that customers have with MB, the product has the potential to grant credit of more than R$1 billion. 

The assets used as collateral for credit will be the cryptocurrencies allocated on the platform. In this sense, consumers will be able to apply up to 30% of the amount they have invested in MB for brokerage analysis. The solution is competitive, since consumer loan rates can reach 9.45% per month on traditional products, while MB offers reduced interest from 1.4% per month. 

The opportunity allows investors not to have to divest themselves of strategic allocations in digital assets, which typically have average profitability above traditional investments.

Credit is free to use and can be used by customers to purchase crypto assets on the platform and obtain higher returns, withdrawal in reais to finance day-to-day operations, or replacement of more expensive lines of credit. Thus, customers can have a monthly income through their investments, which follow assets, while having a financing line with more affordable rates.

“We have always seen the credit product as an area that could be significantly improved by blockchain technology.With crypto collateralized lending, we have been able to offer greater efficiency and reduced costs to customers.This product allows customers to leverage to take advantage of market opportunities without having to divest themselves of their assets, for example”, says Andre Gouvinhas, CFO of Bitcoin Market.

“Crypto collateralized credit is just the first step toward what we will see with the implementation of DREX and the increase of tokenized operations.The programmability of money allows automatic settlement on-chain, without the need for human interference. This increases security and reduces the risk and cost of the operation, resulting in more affordable credit for the final client”.

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 format of Proof of Concept (POC) at the end of July 2024. The modality is available on the MB website, in this link.