Diginex adds Borrowing and Lending capabilities
SINGAPORE, Dec. 22, 2020 /PRNewswire/ -- Diginex Limited (Nasdaq: EQOS), a crypto exchange operator and full digital assets financial services company, announced today that it is expanding its product suite to add borrowing and lending facilities.
The technology will enable customers of Diginex to lend and earn interest on their Bitcoin assets and Ether, which is the asset of the Ethereum network, as well as borrow these cryptocurrencies against their existing crypto holdings.
The crypto borrowing and lending market has increased tenfold over the past 12 months. In 2020, crypto-backed loan volumes grew to $10 billion^[1] from just $1bn in 2019, driven by increased investment activity from institutions.
The market for yield enhancement opportunities for crypto assets has grown as hedge funds and institutional investors look for facilities that will allow them to earn an additional return on their crypto holdings and to enable margin trading.
Richard Byworth, CEO of Diginex commented: "Borrowing and Lending provides yield to this asset class and a necessary hedge for derivative and volatility traders as we continue to expedite the growth of crypto derivatives. We look forward to completing the integration of this institutional grade technology."
This announcement follows Diginex's listing on October 1^st, becoming the first Nasdaq listed company with a cryptocurrency exchange and setting the industry standard in good governance. It also underscores its commitment to providing a full suite of digital asset financial services products to institutional and professional investors.
The new integrated borrowing and lending platform will manage the entire lending lifecycle, actively managing collateral throughout the term and is a key to providing efficient and liquid markets.
The technology will seamlessly integrate with Diginex's ecosystem to provide licensed borrowing and lending capabilities, subject to regulatory approvals.
The ability to borrow and lend on the platform is key to Diginex's customer base of professional traders and will complement the planned suite of derivatives and trading tools including cross collateralization, portfolio margining and capital efficiency products that are being rolled out.
Shane Edwards, Head of Investment Products at Diginex, said: "With interest rates at historic lows there has never been a better time to offer crypto borrowing and lending. We are excited to unveil truly differentiated products with uniquely attractive risk return characteristics, unmatched in the traditional marketplace."
*About Diginex*
Diginex is a digital assets financial services company focused on delivering a cryptocurrency and digital assets ecosystem offering innovative product and services that are compliant, fair and trusted. The group encompasses cryptocurrency exchange EQUOS.io as well as an over-the-counter trading platform. It also offers a front-to-back integrated trading platform Diginex Access, a securitization advisory service Diginex Capital, market leading hot and cold custodian, Digivault and funds business Bletchley Park Asset Management. For more information visit: https://www.diginex.com/
Follow Diginex on social media on Twitter @DiginexGlobal, on Facebook @DiginexGlobal, and on LinkedIn. Follow EQUOS.io on social media on Twitter @EQUOS_io and on LinkedIn.
*Forward Looking Statements*
This press release includes forward looking statements that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled "Risk Factors" in Diginex's Registration Statement on Form F-4 jointly filed bv Diginex and 8i Enterprises Acquisition Corp. ("8i")pertaining to the Business Combination (the "Form F-4"). Important factors, among others, that may affect actual results or outcomes include; the inability to recognize the anticipated benefits of the proposed transaction, which may be affected by, among other things, the amount of cash available following any redemptions by 8i shareholders; the ability to meet Nasdaq's listing standards following the consummation of the proposed transaction; and costs related to the proposed transaction. Important factors that could cause the combined company's actual results or outcomes to differ materially from those discussed in the forward-looking statements include: Diginex's limited operating history and history of net losses; Diginex's ability to manage growth; Diginex's ability to execute its business plan; Diginex's estimates of the size of the markets for its products; the rate and degree of market acceptance of Diginex's products; Diginex's ability to identify and integrate acquisitions; potential litigation involving Diginex or the validity or enforceability of Diginex's intellectual property; general economic and market conditions impacting demand for Diginex's products and services; and such other risks and uncertainties as are discussed in 8i's prospectus filed in connection with its initial public offering and the proxy statement to be filed relating to the business combination.
Diginex expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Diginex's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
^[1] Source: Citywire, December 15^th, 2020 Lending against Crypto? – A $10bn loan market emerges as 2020 comes to a close (Link)