Japanese Cryptocurrency exchange Bitbank has made an announcement to commence BTC-USD, a Bitcoin borrowing program. The idea has been developed to engage more new customers along with enhancing additional foreign exchange. According to the latest developments Bitbank account holders are likely to get the loan of one bitcoin which will be considered as a part of the lending program of the exchange.
In the preliminary stage, Bitbank will permit lending of BTC to the already involved customers. A loan will be disbursed at a predetermined rate of interest for the borrowers. They are already in the process of integrating other popular cryptocurrencies which includes Litecoin (LTC), Ripple (XRP) and Ethereum (ETH). However, this is going to take time and the related announcements will be done very soon in the near future. Earlier this year in April, Tokyo-based cryptocurrency exchange GMO has already rolled out a similar lending program.
As per daily trading basis, Japanese exchange is placed at the 31st position right now. It is expected that this step is going to bring on huge liquidity exchange for traders in future.
How To Opt For This Program?
As per the reports, it is mentioned that cryptocurrency exchange, Bitbank is ready to go through an extensive a strict account checking. The interested customers will get through a scrutinized account checking. After acceptance for the program user will be able to lend 1 Bitcoin for a minimum 12 months. In return for this, the borrowers will pay back interest as per the lent capital proportion.
Cryptocurrency remains locked for the entire loan duration which means that it cannot be transferred or sold. It can be later taken into transaction after the given period has been elapsed. The bank will issue a 3% dividend up to 5BTC and more then that will be entitled to an additional 1 % dividend.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]