Bitcoin Suisse has started offering decentralized financial services (DeFi) to its clients with the addition of the Liquity protocol to its product line.. It allows customers to place Ether (ETH) collateral on the protocol to mint and borrow the stablecoin Liquity Dollar (LUSD).
In an April 20 announcement, Bitcoin Suisse said it will perform all smart contract interactions and system monitoring on behalf of its clients and will allow borrowed LUSD token to be exchanged for any fiat currency.
Bitcoin Suisse is a centralized cryptocurrency and financial services company founded in 2013 and headquartered in Switzerland, which offers services like cryptocurrency trading, custody, lending and staking to mostly institutional investors.
Liquity is a DeFi lending protocol launched in April 2021 that allows users to post ETH collateral to their smart contract and borrow their native stablecoin LUSD at 0% interest rate. Liquity currently has over $1.1 billion of total value locked in its contract.
Bitcoin Suisse CEO Dirk Klee has stated that the company is proud to take an “important step” to offer decentralized solutions to its customers:
“DeFi offers significant improvements over traditional financial services by being more open, more transparent, and more competitive.”
Launched as a pilot stage, Bitcoin Suisse says that the service is only available to a select and “very small” number of their clients who have over $500,000 on the platform.
CeFi is making DeFi its new rails. This is just the tip of the iceberg. Keep an eye on this, people! https://t.co/YfB3Zg21Qk
— Ash (@ashleighschap) April 20, 2022
CeFi is moving to DeFi. This is just the tip of the iceberg. Keep an eye on this, people!
DeFi is becoming of particular interest to both the cryptocurrency sector as for traditional finance, as the current total value locked (TVL) across the ecosystem is approaching $215 billion, according to DefiLlama. This is not far from its all-time high of $254.8 billion on December 2, 2021.
Centralized platforms increasingly use DeFi infrastructureeither by offering a centralized way to access decentralized services or by backing their products with smart contracts or DeFi liquidity.
In March, Binance added functionality for using the PancakeSwap decentralized exchange (DEX) from the Binance app, integrating the DEX into its centralized platform.. In the same month, it also released an updated blockchain bridge, allowing assets to be bridged from any blockchain.
The financial app Australia-based Blockearner backs its “Yield Account” product, which promises a 7% annual percentage yield (APY), with DeFi lending protocols Aave and Compound Financein which users only have to deposit Australian dollars which are staked by the app in DeFi on their behalf.
Bitcoin Suisse has been integrating crypto technology into its offerings for a long time. In November 2021, it was the first cryptocurrency payment processor in Switzerland to integrate the Bitcoin (BTC) Lightning Network of Bitcoin (BTC) in its effort to “promote the widespread adoption of crypto technology.”
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