New offering enables users to borrow stablecoins with altcoin collateral, with fixed interest rate and no margin calls.
Matrixport, one of the world’s largest and most trusted digital assets financial services platform, today announced the first-of-its-kind ‘Non-Liquidation Loan’ product for altcoins.
This innovative lending product gives individual and institutional investors the ability to safely collateralise without the risk of margin calls or liquidation to capture market opportunities or manage liquidity demand.
‘Non-Liquidation Loan’ provides an additional financing solution for those seeking to take out both short- and long-term loans by pledging altcoins as collateral under custody to quickly and efficiently secure capital in the form of stablecoins (USDC or USDT). With a fixed interest rate, and no margin calls linked to its initial Loan to Value (LTV), users can simply resume custody of their assets upon one-off principal and interest repayment before the maturity of the loan.
Cynthia Wu, Head of Business Development & Sales of Matrixport, said “Our ‘Non-Liquidation Loan’ product serves a real need for flexible solutions for those seeking to retain their digital asset holdings. It reflects our commitment to continue to bring to market the world’s most comprehensive suite of innovative products and services that are relevant across various market conditions.”
With a minimum loan amount of USD1,000 per transaction, the new product will initially support four altcoins – Avalanche (AVAX), Chainlink (LINK), Polygon (MATIC) and STEPN (GMT). More tokens are expected to be made eligible for the product.
For more information, please refer to the factsheet here.