Bitcoin Suisse has announced its venture into decentralized finance (DeFi) services. The company will start offering these services through the Liquity protocol that allows customers to borrow the Liquity Dollar (LUSD) stablecoin using Ethereum collateral.
Bitcoin Suisse starts offering DeFi services
An announcement made on April 20 revealed that Bitcoin Suisse would conduct smart contract interactions and monitoring on behalf of clients to enable the borrowed LUSD token to be traded into another fiat currency.
Bitcoin Suisse, a Switzerland based crypto and financial services company, provides a wide range of crypto-related services, including trading, custody, lending and staking digital assets to institutional investors.
On the other hand, Liquity is a DeFi borrowing protocol that charges a 0% interest rate when users borrow the LUSD stablecoin. Liquity currently has a total value locked (TVL) of more than $1 billion.
Bitcoin Suisse has said that DeFi services have been launched in a pilot phase. The services will only be available to select users, and the borrowing amount has been set at more than $500,000.
“DeFi offers significant improvements over traditional financial services by being more open, more transparent, and more competitive,” said the CEO of Bitcoin Suisse, Dr Dirk Klee. He added that the firm was excited about taking a “significant step” toward DeFi services.
Bitcoin Suisse has been keen on crypto technology. In November last year, Bitcoin Suisse became the first cryptocurrency payment processor based in Switzerland to adopt Bitcoin’s Lightning Network to promote the adoption of crypto technology.
Growth of DeFi
DeFi has become a popular subject in the crypto and traditional finance sector. Data from, DeFiLlama shows that the DeFi TVL currently stands at around $215 billion. The TVL reached an all-time high of $254.8 billion on December 2 2021.
The popularity of DeFi has seen several centralized platforms move towards the sector. Last month, Binance, a centralized exchange, announced the launch of a feature supporting access to the PancakeSwap decentralized exchange (DEX) using the Binance app. The exchange also released a blockchain bridge to allow assets to be bridged from any blockchain.
Blockearner, a finance app based in Australia, is another example of a centralized exchange moving towards DeFi. The app backs its Yield Account product with the Aave and Compound DeFi lending protocols. Users only have to deposit Australian dollars that the app will stake on DeFi projects on their behalf.
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