Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be the first truly decentralized finance (DeFi) product.

The exchange would start lending USDC, PAX, USDT, and DAI stablecoins via peer-to-peer lending. The users would be required to put their bitcoin up as collateral to access the stablecoins and the collateral period ranges from one day to a full year. Apart from offering the flexible collateralization period, the platform does not ask for any form of KYC details to access their services.

In the past couple of years, crypto lending services have seen a significant boom, especially after the rise of venture-backed firms such as BlockFi and Genesis Capital. Genesis currently boasts of $1.4 billion in outstanding loans, while BlockFi currently has $1.75 billion worth of assets under its management.

Hodl Hodl CEO Max Keidun commented on the idea behind launching a KYC-free lending service and said,

“Hodl Hodl is trying to build true P2P lending in bitcoin. Almost all (if not all) existing lending platforms are centralized, require KYC, don’t allow you to play by your own rules.”

Another thing that Hodl Hodl is actively highlighting is that it would not be the custodian of the assets put in collateral. Instead, borrowers would lock their bitcoin's in two-out-of-three multisig escrows. The borrowers can get back their collateralized bitcoin by repaying the stablecoins with interest.

Stefan Jespers, a Belgium-based bitcoin advocate, commented on the growing trend of lending services in decentralized space and said,

“If you have some stablecoins laying around that you aren’t using, it’s a nice way to make some extra money with it. And you know beforehand what the interest rate will be.

With most other products on the market, those rates can change frequently; here, it’s locked for the entire duration.”

The post Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC first appeared on BitcoinExchangeGuide.

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