Brazilian cryptocurrency exchange Mercado Bitcoin launches cryptocurrency-backed loans

ChainCatcher news, one of Brazil's largest cryptocurrency exchanges, Mercado Bitcoin, has announced the launch of a lending product that uses cryptocurrency as collateral, which will be paid to users in the local currency. This is the company's first such product, having received a payment institution license from the central bank last year.

To avoid high risks associated with clearing, Mercado Bitcoin will limit loans to 30% of the holdings of exchange users. The exchange holds over $900 million in crypto assets, which means a credit capacity of over $300 million.