California-based cryptocurrency trading app Abra has launched a cryptocurrency lending and borrowing service.
- Announced Tuesday, users will be able to use their crypto holdings as collateral for loans of fiat currency with the new feature.
- Abra Borrow will initially be available in 35 U.S. states (with more expected soon) as well as globally for the platform's claimed 1 million users.
- Borrowers will be able to "tap into their crypto price gains without selling their crypto or forgoing future price gains," according to CEO Bill Barhydt.
- Rates start at 3.95% APY with loan terms from six to 24 months.
- Abra received a $5 million investment from Stellar Development Foundation (SDF) in May, preceding the platform's integration with the Stellar blockchain.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.