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.