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In just two weeks after launching its ETH and BTC deposit accounts with interest payment rates of 6.2% (compounded annually), the non-bank lender has seen deposits explode. The products have been quite controversial in the community given the custodial / counterparty risk and rehypothecation.
For the first time, a financial asset has been created that is both natively digital and global. A market around these assets and the technology that underpins them, blockchain, is growing rapidly. This innovation creates the opportunity for lenders to assign a global price to digital assets and underwrite risk similarly for borrowers, regardless of the country in which the borrower resides. As a result, there is an opportunity to extend low cost credit in markets where it previously was not available and grow access to a critical part of banking infrastructure that could expand global economic activity dramatically.
