Crypto Lending firm Pawnhub.io gets approval from Hong Kong Government
Crypto lending firm Pawnhub has obtained a license from the Hong Kong government to become the first Crypto company to receive a fully licensed approval from the government.
With more and more people getting easy access to Crypto assets, lending has become a popular way to earn money in the Cryptosphere. Unlike the traditional fiat currency market, the Crypto lending market is dominated by startups instead of big banks and institutions. However, the Crypto lending landscape is still relatively nascent and there is huge potential for growth.
Pawnhub is a step ahead of its competitors by obtaining the license in Hong Kong which is the financial capital of Asia, the firm also has offices in the UK, Switzerland, Thailand and Taiwan. Pawnhub will now be able to provide $100 Million worth of insurance anywhere in the world with the help of its US-based Crypto custody partner.
Pawnhub is relatively transparent and allows users to retain their assets with high liquidity on its platform. Any product that works on a model for lending comes with risk which is why the $100 Million insurance is a great way to protect the customers in the case of a black swan event. Pawnhub currently offers lending options to Cryptocurrencies like Bitcoin with a transparent fee model.
The entire Crypto market is worth around $280 Billion at the time of writing, but lending is still a small industry. In the coming years as the Crypto market matures, we can expect to have more lending products with compelling interest rates.
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