Celsius Network, a crypto-lending platform offering low borrowing rates, is making it easier to borrow crypto-backed loans by lowering the threshold on borrowing from $1,000 to $500.
With no origination fee and quick approvals, Celsius thinks the new limit will make it easier for customers to borrow what they need without going overboard, creating a more efficient lending market and helping certain borrowers pay less in long-term interest.
Celsius Network is a centralized wallet application that allows users to store and transfer cryptocurrencies, including Ethereum, Bitcoin, and more than 30 other crypto tokens. Celsius users can make their deposits available for lending with returns of up to 9% for Ethereum and 6% for Bitcoin.
They can also take out loans denominated in dollar-pegged stablecoins against crypto holdings deposited in their wallets at annual interest rates starting at 1%. Stablecoins are crypto tokens with value pegged to other assets, such as the US dollar; users who opt to lend USDC stablecoins can earn more than 15% annually at current rates.
Celsius has seen impressive growth over the course of 2020, growing from fewer than 100,000 customers in April to more than 200,000 today; it’s issued more than $8 billion in loans since its founding in 2018. Celsius also closed a $10 million investment round led by stablecoin issuer Tether in June, with the aim of adding Tether’s dollar-pegged stablecoins (known as Tethers) to the platform.
“It’s more important now than ever to provide more people with the same financial benefits reserved for the ultra-rich,” Celsius CEO Alex Mashinsky said in a press release.
“When you borrow against your assets with Celsius, you can access all the cash you need and still hold on to your crypto, and just like the billionaires, you can defer capital gains taxes by not selling your assets. By reducing the minimum amount of money required to request a loan, we’re enabling millions of more people to access these same financial tools.”