AQRU plc, a UK-based decentralized finance (DeFi) company, on Tuesday announced the launch of BlockLender, a startup that provides cryptocurrency-secured lending services to users.

According to the report, BlockLender is set to give digital asset holders the opportunity to use their cryptocurrency as collateral to access affordable instant loans.

According to the report, BlockLender operates differently from other companies in the industry in that it does not fund its loans through user deposits, but instead invests user collateral in smart contracts with well-developed DeFi protocols to generate returns that are used as collateral to finance the underlying loan. This approach allows the company to keep the interest rate low while limiting risks to clients, according to the report.

Philip Blows, CEO of AQRU and CEO of BlockLender, admitted that although cryptocurrency-backed loans allow consumers to use their digital assets to transact everyday purchases, several providers have taken high levels of risk with user funds. without the knowledge of your customers.

The CEO said that the establishment of BlockLender is part of AQRU’s commitment to providing users with access to services in the cryptocurrency industry that effectively manage clients’ risk and provide them with transparent information about how their assets are managed.

The above development comes as most consumers globally are facing difficulties in borrowing funds from traditional banks at a time of extremely high interest rates and persistent inflation. As a result, many regions, including the UK, have turned to cryptocurrencies to gain access to needed credit.

In 2020, inflation induced by the Covid-19 pandemic hit, and that prompted central banks to raise interest rates, with further increases in 2021 and 2022.

As a result, traditional bank lending rates grew exponentially, leading to the growth of crypto digital asset platforms that offer up to 50% lower rates and zero maintenance fees.

As the adoption of digital assets grew around the world, users had to sell their cryptocurrencies to spend in their daily lives. The launch of credit offering services is poised to help people grow their businesses or projects without selling their cryptocurrencies.

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