Crypto exchange and infrastructure provider VALR has launched Borrow, a new service allowing users to access funds by using their crypto holdings as collateral instead of selling their assets.
The service supports cryptocurrencies including Bitcoin and Ethereum and is aimed at both individual investors and corporate clients.
Through Borrow, users can receive funds directly into their VALR accounts, where they can trade, convert the funds to fiat, withdraw them or spend through VALR Pay.
Access Funds Without Selling Crypto
VALR says the service allows customers to retain ownership of their crypto while accessing liquidity when needed.
Borrowing limits are determined by the value of the assets used as collateral and the risk profile of those assets. The process is automated and does not require traditional credit checks or paperwork.
Users also have flexibility around repayment, with no fixed repayment schedules or early settlement fees. They can repay at their own pace or adjust their collateral as market conditions change.
“Our goal with Borrow is simple: to give our users quick access to funds whenever they need them, without forcing them to sell the crypto they believe in,” said Badi Sudhakaran, Chief Product Officer at VALR.
He added that the product could help customers manage short-term expenses, pursue investment opportunities or manage business liquidity.
Expanding VALR’s Crypto Offering
Borrow joins VALR’s existing suite of services, which includes spot and margin trading, perpetual futures, staking, lending, OTC services and VALR Pay.
Founded in 2018 and headquartered in Johannesburg, VALR says it has more than 1.9 million registered users and 1,900 corporate and institutional clients globally.
The company is licensed by South Africa’s Financial Sector Conduct Authority (FSCA).
Important: Crypto-backed borrowing carries significant risk. Falling crypto prices can affect the value of collateral and may result in losses, including the potential loss of assets or funds provided as collateral.
Main Image: VALR
