Bitstamp launches a new transparent crypto lending service for the European market

The world’s longest-running crypto exchange has today launched a new, ground-breaking lending service in many European markets and other select regions to provide enhanced security and transparency for both new and existing European customers looking to earn additional crypto rewards on their crypto holdings.

Central to introducing transparency in crypto lending for customers, Bitstamp is launching Monthly Lending Performance Reports which will provide data and insights into product performance and risk. The first of its kind in the market, this report will provide key metrics, such as lending portfolio performance and concentration, borrower risk profiles, and collateral levels.

Prior to and while using the service, the benefits and risks of lending are clearly shared with Bitstamp users. This means customers can decide on their own terms whether or not to lend their assets, putting the control back in the hands of the customer. Assets will never be lent without explicit instruction, and all loans are provided on open terms – so customers can withdraw at any time.

Bitstamp has decided to partner with experienced digital asset lending provider Tesseract to ensure that all assets are lent solely to reputable and creditworthy institutions who have undertaken a rigorous credit and risk assessment. To further ensure a trustworthy and dependable lending service, Tesseract also requires borrowers to provide at least 100% collateral for all stablecoin loans. The partnership between Bitstamp and Tesseract for lending uses a separate legal entity to keep customer loans and assets separate from Tesseract’s other partners.

The crypto exchange offered the crypto lending service to a select group of existing customers in some markets across Europe in March 2023. A high proportion of customers who took up the offer reported they were satisfied or very satisfied with their experience – particularly 92% with ease of use; 77% with the guidance on how to lend their crypto; and 72% with the level of security, stability and transparency.

Bitstamp offers daily reward distribution with no lock-in period for our lending customers up to 4.4% APY. The lending assets Bitstamp offer are: BTC, ETH, USDC, USDT, XRP, BCH, LINK, LTC and APE.

Jean-Baptiste Graftieaux, CEO of Bitstamp, said: “Trust and transparency is at the heart of all our operations here at Bitstamp. As one of the most regulated crypto exchanges, our new lending service is the next step in our journey to offer more ways for our customers to benefit from the evolution of crypto in a reliable and secure way.

“The first phase of Bitstamp offering crypto lending showed that when customers are given the full picture of their portfolio, there is strong appetite for the product. We’re re-building crypto lending from the ground up – shifting from the often opaque and mysterious world of crypto lending to being radically transparent and accessible.”