GMO Coin Borrows BCH, ETH, LTC, XRP From Customers

Japan’s Crypto Exchange GMO Wants to Borrow BCH, ETH, LTC, XRP From Customers

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  • Japanese cryptocurrency exchange, GMO Coin, adds 4 more digital coins to its loan program.
  • The exchange gives about 5% per annum interest on loaned cryptocurrencies.

Japan: GMO Coin, the crypto exchange subsidiary of GMO Internet based in Japan, has announced the addition of 4 more digital currencies to its loan program which lets clients lend their digital currencies to the exchange. The loan program commenced last month for just Bitcoin (BTC) but now Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Ripple (XRP) has been added to the program by GMO Coin.

According to GMO Coin, the loan program “allows you to rent out the virtual currency held by the customer to the company so that you can receive the rental fee according to the quantity of the lent virtual currency.”

Clients who show interested must apply between 9th May and 23rd May. If the exchange gets more response from clients than needed, it will use a drawing to choose those to borrow from. Presently, the target cryptocurrencies are Bitcoin Cash, Ether, Litecoin, and XRP. Interested clients can lend between 50 and 500 BCH; 100,000 and 1,000,000 XRP; 300 and 3,000 LTC; and 100 and 1,000 ETH.

Clients will get back their lent cryptocurrencies in the same amounts and types at maturity, the maturity time is 150 days. However, clients will also receive an interest of 2.04109589 ETH for every 100 ETH borrowed; 1.02054794 for every 50 BCH; 6.12328767 LTC for every 300 LTC; and 2,041.0958 XRP for every 100,000 XRP borrowed. GMO Coin stated that the interest “corresponds to 5 percent per year (tax included),” the exchange added that taxes will also be charged on the loan fees.

GMO Coin, who claimed to have mined a total of 537 BCH and 906 BTC, is one of the two fully licensed exchanges in Japan to receive a business improvement order from the Japanese Financial Services Agency (FSA) after the FSA heightened its investigation on cryptocurrency exchanges after the Coincheck hack in January. The other exchange is Tech Bureau which runs Zaif exchange.

Would you like to lend GMO Coin your cryptocurrency? Let us know in the comments box.

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