With its newly launched lending service, ByBit offers hourly interest payments of up to 16.46%.
Bybit, a Dubai-based cryptocurrency exchange established in 2018, introduces its in-house cryptocurrency lending services.
According to the announcement shared on May 2nd, Bybit is offering interest payouts to users who deposit cryptocurrency through the firm's service.
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Bybit's lending service issues hourly interest payments of up to 16.46% from lending pools and allows lenders to deposit and take away loaned crypto tokens without lock-up periods.
For borrowers on Bybit's crypto exchange, loans can be taken out to access funds for various trading options on the platform. Based on the announcement, to protect lenders' investments, borrowers are required to post collateral assets equal to or greater than the loaned amount.
In a statement, Bybit CEO and co-founder Ben Zhou explained the crypto exchange's goal to offer users a way to generate returns while giving advanced traders access to capital from lenders for more sophisticated trading options.
Bybit joins the ranks of major cryptocurrency exchanges, like Binance, OKX, and KuCoin, that already offer lending services.
Binance provides several services that enable users to earn interest on deposited cryptocurrency assets, while KuCoin, offers lending services for a wide range of tokens. Moreover, OKX provides a loan facility allowing users to borrow funds based on deposited tokens but does not offer lending services.
Bybit's entry into the crypto lending market demonstrates the growing trend of major crypto exchanges expanding their offerings, providing users with more ways to generate returns and access capital for advanced trading opportunities.
It is worth noting that, at the end of April, Bybit revealed that it is making Know Your Customer (KYC) identity verification mandatory for all services beginning May 8th.
