Brazilian centralized crypto exchanges are starting to offer crypto-based products in Brazil. Mercado Bitcoin, one of the largest cryptocurrency exchanges in the country, has announced a crypto-collateralized loan product that will be paid in national currency to its users. This is the first product of its kind offered by the company, which received a payment institution license from the central bank last year.
To avoid the high risks associated with liquidations, Mercado Bitcoin will limit the loans to 30% of the cryptocurrency users held by users in the exchange. This translates into a credit capacity of over $300 million, given that over $900 million are under exchange custody.
The credits will have an interest rate of 1.39% per month, one of the lowest rates for collateralized loans in Brazil, and only accept bitcoin and ether, the two largest cryptocurrencies by market capitalization. Other cryptocurrencies might be added at a later date.
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