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Argentinian Exchange Launches Crypto Loans, Plans New Funding After Layoffs
Users of the platform will be able to withdraw up to $3,333 in nuARS, a stablecoin tied to the Argentinian peso, using MakerDAO’s DAI as collateral.
Andrew
6:02 19th Jul, 2022
Adoption

Buenbit, an Argentina-based crypto exchange with operations in Mexico and Peru, launched a local currency loan product Monday that uses crypto as collateral.

Users of the platform will be able to use MakerDAO’s stablecoin, DAI, as collateral and withdraw up to one million nuARS, a stablecoin tied to the Argentine peso, the company said in a statement. At the current exchange rate, the maximum amount is equivalent to $3,333.

Federico Ogue, Buenbit’s CEO, told CoinDesk the product is the first of its kind in Latin America.

“It is a model that emerged abroad but with loans in U.S. dollars, but it does not work for Latin Americans. Who wants to borrow U.S. dollars in the region? Too much risk,” Ogue said.

Users can borrow for loans as long as they collateralize 80% of the requested amount, the company stated, adding that the DAI will be locked into the platform yielding returns.

The nuARS stablecoin, which operates on Binance’s blockchain, was developed by Num Finance, a firm that also plans to launch nuPEN and nuMXN, two stablecoins tied to the Peruvian and Mexican currencies, respectively.

In Peru, Buenbit plans to launch loans in partnership with Num Finance “shortly,” the company said.

In Argentina, users will be able to use nuARS to buy other cryptocurrencies on Buenbit, withdraw or spend them via the prepaid card offered by the exchange, the company added.

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