The reduction in interest rates by the US Central Bank (Fed) has led to an increase in demand for crypto-credits. The Blockchain-driven lending platform, “Figure Technologies” was recorded approximately a tripling of loan applications.
Stimulus from the FED encourages consumers, more loans
Last Tuesday, the Fed cut interest rates by 0.5% to a target of 1.00% to 1.25%. For many crypto-applications for credit that was a great suggestion.
Figure Technologies, which use, in turn, the Blockchain, in order to change the market for crypto-Lending, claiming that loan applications had increased in the last week by 300%. Thus, the total reached the amount of company-financed loans to over 1 billion dollars.
To this end, Mike Cagney, co-founder and CEO of Figure says:
“The 300 percent increase in applications suggests that consumers want to take advantage of the unprecedented low interest rates for mortgages, HELOCs, and refinancing of student loans. Consumers will be lower costs of Debt and the refinancing of cash and HELOCs – due to a larger cash balance benefit.“
Cagney, according to the Figure is the first “de novo”-Fintech-companies with $ 1 billion in funded loans. He explains that the success of the company thanks to its proprietary Blockchain-platform Provenance, which focuses on the crypto-credit solutions, is “guaranteed”.
Meanwhile, factors such as the decision of the Fed to loosen monetary policy to encourage consumers to make more loans. The Central Bank is trying to the impact of the Coronavirus epidemic.
Data show that the average amount of the loans that are forgiven after the interest rate cut by the Fed is about $ 50,000 per household.
Blockchain.com launches new Service
Although it is not necessarily associated with the step of the Fed, has Blockchain.com one of the leading crypto-Wallet provider called now Borrow to live. The latter is a new product with the user dollar-based Stablecoins against crypto-currencies, including Bitcoin, can be rented.
Peter Smith, co-founder and CEO of Blockchain.com comments the introduction is as follows:
“Institutional and private investors have the same financial goals – growth of assets and risk management. But the tools at their disposal are very different. With our range of Trading products and Borrow private investors, such as the Large trade without selling the one you have hoarded crypto, or to leave your Wallet can.“