Cryptocurrencies play an increasing role of importance in the lending business. Bitcoin and altcoins provide a cross-border solution in terms of sending money, which is of great interest to a lot of people. GMO Internet acknowledges this trend and is expanding its loan program. Four new cryptocurrencies have been added last week, which is pretty interesting.
There is a lot more to cryptocurrency than just Bitcoin. This is slowly becoming more apparent in various sectors making use of cryptocurrencies. GMO Internet, for example, is trying to expand its presence in the lending industry. As of right now, the firm supports five different cryptocurrencies. Four new coins were added last week, including Bitcoin Cash, Ethereum, and XRP.
A Smart Move by GMO Internet
As such, customers of the company can lend their coins to them in exchange for a rental fee. This fee is proportional to the amount being loaned in the first place. It is a relatively new service by GMO Internet which only launched in April of 2018. By adding a few new currencies at this early stage, the firm confirms this business model is valid.
Anyone interested in this service can apply through GMO Internet’s page. It is evident the firm is genuinely interested in loaning all of these different currencies from its users. How they will use the money exactly, is a different matter altogether. Borrowed cryptocurrencies will be locked for 150 days. Afterward, the clients will receive their initial amount and the rental fee back in their wallet.
It is a very peculiar business model which offers a lot of potential. With customers earning around 5% interest per annum through this method, it generates a passive revenue stream. It will be interesting to see how much interest there is in this particular venture moving forward. Adding altcoins to the list will certainly attract some attention moving forward.
Header image courtesy of Shutterstock
