Singapore’s Cake DeFi Launches New Loan Service, Accepting Crypto as Collateral
Nicholas Otieno Apr 29, 2022 07:50
Customers of Cake DeFi platform will now be able to get cash loans by placing their cryptocurrencies as collateral.
Cake DeFi, a Singapore-based fintech platform, announced on Thursday that it has launched a new decentralized finance (DeFi) service that lets users get loans using cryptocurrencies as collateral.
The fintech firm said that the new service – which is called Borrow – allows customers to take a loan in decentralized USD stablecoin (DefiDollars), using their Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), or DeFi Chain (DFI) tokens as collateral, at a preset collateralization ratio of 200% and 5% annual percentage rate (APR), which are subject to change.
Cake DeFi further stated that customers can then spend the borrowed DUSD stablecoin to purchase items or invest in Cake DeFi’s passive income-generating solutions like staking, lending, and liquidity mining, either directly or after swapping it with other coins.
Julian Hosp, Cake DeFi co-founder and CEO, talked about the development and said that the launch of the new product came as a result of strong demand for personal and commercial loans that accept cryptocurrency as collateral. He cited a study by fintech company Stilt that identified that 94% of crypto users are either Generation Z or millennials.
“We are excited to launch Borrow, to provide users with more liquidity to invest in DeFi services while holding on to their assets. DeFi empowers people to generate passive income on their cryptocurrencies without the constant need to trade. It is our goal at Cake DeFi to keep bringing such innovative services to our users,” Hosp elaborated.
Facilitating Innovation and Growth
Early last month, Cake DeFi launched its corporate venture arm with $100 million in the capital.
The new venture arm, called Cake DeFi Ventures, focuses its investments across the metaverse, Web3, the NFT space, fintech, gaming, and esports spaces so as to benefit the core business of the parent company.
Cake DeFi was established in 2019 as a firm dedicated to solving people’s financial problems. The mission of the company is to inform and educate global users about cryptocurrency and DeFi in a simple, understandable, and straightforward manner.
The firm is a fully compliant platform, registered by the Monetary Authority of Singapore (MAS). Currently, Cake DeFi manages over $1 billion in customer assets and has about 500,000 customers globally. The fintech platform focuses on creating DeFi services and applications such as liquidity mining, staking, and lending, which generates crypto returns for users.
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