Cryptocurrency

One of India's oldest cryptocurrency companies, ZebPay launched the country's first cryptocurrency-based lending platform that will allow its investors to lend their cryptocurrency to ZebPay and earn interest based on it.

ZebPay is India's most widely used Bitcoin and crypto asset exchange. The company's new platform allows its users to lend their coins to ZabPay on which they earn interests depending on the coin and the period for which it is loaned. It generates interest based on the users' crypto investments if they lend select cryptos. This lending platform provides a passive source of income for its users by adding on to the returns gained from the rising prices in the crypto market. For now, the investors are enabled to open fixed deposits in Bitcoin, Ethereum, stablecoin Dai and Tether.

On further use, the platform will also offer both open and fix term lending. Fix term lending includes 7-day, 30-day, 60-day, and 90-day periods, and the rate of interest will vary according to this period. The company also revealed that the tokens cannot be withdrawn until the end of the term, and investors willing to withdraw the tokens in advance will be subjected to penalties. The interests will be deposited in the investor's trading wallet, which means that it also gives a chance to convert the interests' amount into fiat money.

ZebPay claims that this fixed deposit model will generate higher returns than the traditional holding strategy on crypto assets since the growth rate is guaranteed at a fixed rate, despite the market fluctuations. Besides, ZebPay and Vauld in India, other exchanges like Binance and Coinbase, provide similar services, globally.

These crypto-based fixed deposits are expected to drive more activity in the cryptocurrency sector since there is already a huge influx of new Indian investors in the exchange this year.

Crypto companies in India have faced issues running exchanges in the past weeks. It started after an informal instruction from the Reserve Bank of India (RBI) , earlier, and led to several banks withdrawing their services from the crypto exchanges. Lending platforms can allow companies to keep the investors interested in crypto, and long-term investors can continue their services.