Is Hong Kong’s First Crypto Lending Licensee

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by Kseniia Klichova · 3 min read Is Hong Kong’s First Crypto Lending Licensee
Photo: PawnHub

PawnHub enables a new way of monetizing an ever-expanding universe of Bitcoin assets, gives value to previously latent capital, unlocking the wealth within physical and social assets, and providing a new source of money creation.

According to crypto lending platform PawnHub, the largest asset classes in the world (stock markets and residential real estate) are collectively worth $217 trillion, putting the global debt-to-asset ratio at 80%, when considering $244 trillion as the global debt.

The growth of the crypto lending industry has taken many by surprise. And while the pace of growth means that demand still far outstrips supply. With the crypto lending sector heating up in 2020 after a previous year of unrivaled growth, the one question that could be on everyone’s minds when testing the waters for crypto loans is: “Are my crypto tokens really safe if I loan them out?”

And now, crypto lending firm PawnHub may just have the positive answer to that, with its latest partnership with a leading US-based custodian set to protect client funds with a $100 million insurance coverage.

Such is its assurance quality that has also successfully obtained a full license from the Government of Hong Kong to conduct its crypto lending activities. Its partnership with a US-based crypto custodian also speaks volumes of its reputation and credibility, with only the highest security and robust business model able to secure an agreement to provide full insurance coverage for the Bitcoin assets of PAwnHub clients wherever they are in the world, up to a value of $100 million.

With decentralized finance (DeFi) on the headlines and thought by many to be one of the trends for 2020, crypto lending is moving quickly from operating on the fringes to becoming a central hub of crypto activity. PawnHub, with its 100-million-dollar assurance and license, means it is the first fully regulated crypto lender based in Asia, jostling with some of the biggest firms in crypto enterprise in China, Hong Kong, Japan, Singapore and South Korea, jurisdictions that are fast recognizing the need to legally accept blockchain-based business.

Untapped Potential of Crypto

While cryptocurrencies now enter their 11th year, thanks largely to Bitcoin, it is only now that other blockchain innovations like smart contracts and decentralized platforms have resulted in real-world use. Financial instruments more familiar to traditional money such as bonds and loans are now creeping into crypto, thanks to their severe status of being under-leveraged. Compared to the global debt-to-asset ratio of 80%, crypto’s $200 billion only has a 2% ratio.

PawnHub’s innovative business models mean that both crypto and traditional worlds can enjoy this untapped potential. Bitcoin owners can retain ownership of crypto assets by putting it up at PawnHub, for an exchange of immediate liquidity. Bitcoin’s divisibility and fungibility, combined with its instant ability to be transferred, means that all clients can use loans to diversify investments, be it real estate, stocks or precious metals.

PawnHub’s status as the crypto lending pioneer is only enhanced as Hong Kong’s first licensee, and its future as a crypto innovator is bright, especially since loaning processes are not only simple but transparent and cost-efficient.

Being able to obtain a license, and secure an asset insurance partnership with a crypto custodian from the US means that PawnHub has been deemed fit for sound business practices.

To experience crypto lending at one of the most trustworthy brands in the industry and enjoy more leverage for your Bitcoin, visit the official PawnHub website now. Or, follow PawnHub on social media for the latest updates on Facebook, Twitter and Telegram.

Blockchain News, News
Kseniia Klichova

Kseniia is the Chief Content Officer of Coinspeaker, holding this position since 2018. Now she is very passionate about cryptocurrencies and everything connected with it, so she tries to ensure that all the content presented on Coinspeaker reaches the reader in an understandable and attractive way. Kseniia is always open to suggestions and comments, so feel free to contact her for any questions regarding her duties.

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