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Hong Kong-based crypto lending firm PawnHub.io has obtained a license from the Government of Hong Kong. The firm will partner with a leading US-based cryptocurrency custodian, to provide insurance coverage for clients' Bitcoin assets of up to $100 million USD anywhere in the world.
Crypto lending is fast becoming an integral part of the crypto ecosystem with PawnHub being the first regulated crypto lending firm to be based in Asia; home to some of the worlds biggest cryptocurrency nations, such as South Korea, Japan, China, Hong Kong and Singapore.
Statistics that support the rapid growth of the crypto lending industry are staggering. The world's largest asset classes, (the global stock market and residential real estate) are collectively worth an estimated $217 trillion, with global debt at $244 trillion, a debt-to-asset ratio of 80%.
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Cryptocurrencies, on the contrary, are under-leveraged. Cryptocurrencies have an estimated value of $200 billion, with a debt-to-asset ratio of only 2%. There is huge growth potential in the crypto lending landscape in the coming future.
The innovative business model of PawnHub brings to the Bitcoin community the best of both worlds, by allowing them to retain ownership of their crypto assets while having immediate access to liquidity. Bitcoin is divisible, fungible, often instantly transferrable, with users able to use the loans to diversify into other assets such as real estate, and automobiles.
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