Pawnhub startup became the first fully licensed and insured credit cryptocurrency company in Hong Kong. The corresponding license was issued to the company by the regional regulator.
In addition, Pawnhub, which has branches in Switzerland, the United Kingdom, Taiwan and Thailand, announced that it will partner with a leading American company for storing crypto assets. This will allow the startup to offer bitcoin insurance to its clients for up to $100 million anywhere in the world.
Pawnhub has big plans – The company wants to become one of the leading cryptocurrency credit firms in the Asia-Pacific region. Many Asian countries have become the largest cryptocurrency markets, and the most forward-thinking governments are introducing increasingly friendly regulation of crypto assets.
Over the past 2 years, cryptocurrency lending has become one of the fastest growing and most profitable sectors of the cryptocurrency industry. However, despite the fact that the industry is growing rapidly, its size still cannot compare with traditional lending markets. The capitalization of the entire cryptocurrency market today is about $280 billion.
Lending can become one of the most important components of the cryptocurrency industry, as it allows owners of crypto assets to access Fiat currencies without giving up ownership of assets during a “bear” market. Interest on a loan can be easily returned at a profit during a bull market.
Pawnhub is just one of the companies in the cryptocurrency lending industry. Recall that the cryptocurrency platform Celsius Network, also working in the field of lending, in November reported that the total amount of loans issued by the company in cryptocurrency exceeded $4.25 billion.
Another major market player, startup BlockFi, in December received a license to make money transfers in Washington, which will allow the company to offer accumulative cryptocurrency accounts to residents of the state. In addition, in may, BlockFi announced the launch of cryptocurrency deposits in the Gemini Dollar stablecoin, and in April it became known that the deposits of users of the credit startup reached $53 million.