Sunday, February 28, 2021

Bitfinex Announces Addition of Tezos (XTZ) As Collateral

Bitfinex, the leading cryptocurrency exchange, has announced the addition of Tezos (XTZ) as collateral on Bitfinex Borrow, a peer-to-peer digital currency loan portal.

According to the report, the customers of the exchange will be able to obtain about 70% loans of the value of their XTZ holdings in US Dollars.

Read also: Grayscale Trust Incorporates Chainlink (LINK), Tezos (XTZ), and Four Other Assets

XTZ Now Available For Selection as Collateral on Bitfinex Borrow

The report stated that Tezos (XTZ) is now included for selection from the list of currencies that borrowers wish to use as collateral.

Bitfinex tweeted, “Tezos has been added to Bitfinex Borrow! Users can now obtain a loan using their XTZ as collateral. Using Bitfinex Borrow is intuitive and straightforward. Discover now all the details about using Tezos as collateral.”

Read Also: Tezos Foundation Joins $2.5 M Funding Round for Zabo to Bring Crypto into Mainstream Financial Services

What Bitfinex Customers Need To Know

According to Bitfinex, a user can choose between a variable interest rate based on the Flash Return Rate (FRR) or a fixed-rate loan.

Many factors such as the amount used as collateral, the loan amount, borrowing period, and preferred interest rate option determine the annual and daily rates, coupled with the total lending and repayment amounts.

Moreover, borrowers are liable to choose the period over which a loan is repaid, but fixed-rate loans are to be repaid after 120 days. All fixed-rate loans are automatically converted into variable-rate loans once they expire.

Bitfinex noted:

“The personal loan will be credited to a borrower’s Margin wallet. Borrowers can make partial or full repayments on both the principal and interest of the loan by moving funds back into their Margin wallet, thereby reducing their daily interest rate. Borrowers will have to manage their own risk of the fluctuating XTZ price.”

Read Also: Tezos (XTZ) Now Listed On Poloniex Exchange

In conclusion, only users that are fully verified by the exchange can borrow and withdraw fiat currencies from the platform.

Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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