SINGAPORE, Dec. 22, 2020 /PRNewswire/ -- Diginex
Limited (Nasdaq: EQOS), a crypto exchange operator and full digital
assets financial services company, announced today that it is
expanding its product suite to add borrowing and lending
facilities.
The technology will enable customers of Diginex to lend and earn
interest on their Bitcoin assets and
Ether, which is the asset of the Ethereum network, as well
as borrow these cryptocurrencies against their existing crypto
holdings.
The crypto borrowing and lending market has increased tenfold
over the past 12 months. In 2020, crypto-backed loan volumes grew
to $10 billion[1] from
just $1bn in 2019, driven by
increased investment activity from institutions.
The market for yield enhancement opportunities for crypto assets
has grown as hedge funds and institutional investors look for
facilities that will allow them to earn an additional return on
their crypto holdings and to enable margin trading.
Richard
Byworth, CEO of Diginex commented: "Borrowing and Lending
provides yield to this asset class and a necessary hedge for
derivative and volatility traders as we continue to expedite the
growth of crypto derivatives. We look forward to completing the
integration of this institutional grade technology."
This announcement follows Diginex's listing on October 1st, becoming the first Nasdaq
listed company with a cryptocurrency exchange and setting the
industry standard in good governance. It also underscores its
commitment to providing a full suite of digital asset financial
services products to institutional and professional investors.
The new integrated borrowing and lending platform will manage
the entire lending lifecycle, actively managing collateral
throughout the term and is a key to providing efficient and liquid
markets.
The technology will seamlessly integrate with Diginex's
ecosystem to provide licensed
borrowing and lending capabilities, subject to regulatory
approvals.
The ability to borrow and lend on the platform is key
to Diginex's customer base of
professional traders and will complement the planned suite of
derivatives and trading tools including cross collateralization,
portfolio margining and capital efficiency products that are being
rolled out.
Shane Edwards, Head of Investment
Products at Diginex, said: "With interest rates at historic lows
there has never been a better time to offer crypto borrowing and
lending. We are excited to unveil truly differentiated products
with uniquely attractive risk return characteristics, unmatched in
the traditional marketplace."
About Diginex
Diginex is a digital assets financial services company focused
on delivering a cryptocurrency and digital assets ecosystem
offering innovative product and services that are compliant, fair
and trusted. The group encompasses cryptocurrency exchange EQUOS.io
as well as an over-the-counter trading platform. It also offers a
front-to-back integrated trading platform Diginex Access, a
securitization advisory service Diginex Capital, market leading hot
and cold custodian, Digivault and funds business Bletchley Park
Asset Management. For more information visit:
https://www.diginex.com/
Follow Diginex on social media on Twitter @DiginexGlobal, on
Facebook @DiginexGlobal, and on LinkedIn. Follow EQUOS.io on social
media on Twitter @EQUOS_io and on LinkedIn.
Forward Looking Statements
This press release includes forward looking statements that
involve risks and uncertainties. Forward looking statements are
statements that are not historical facts. Such forward-looking
statements are subject to risks and uncertainties, which could
cause actual results to differ from the forward-looking statements.
These risks and uncertainties include, but are not limited to,
those factors described in the section entitled "Risk Factors" in
Diginex's Registration Statement on Form F-4 jointly filed bv
Diginex and 8i Enterprises Acquisition Corp. ("8i")pertaining to
the Business Combination (the "Form F-4"). Important factors, among
others, that may affect actual results or outcomes include; the
inability to recognize the anticipated benefits of the proposed
transaction, which may be affected by, among other things, the
amount of cash available following any redemptions by 8i
shareholders; the ability to meet Nasdaq's listing standards
following the consummation of the proposed transaction; and costs
related to the proposed transaction. Important factors that could
cause the combined company's actual results or outcomes to differ
materially from those discussed in the forward-looking statements
include: Diginex's limited operating history and history of net
losses; Diginex's ability to manage growth; Diginex's ability to
execute its business plan; Diginex's estimates of the size of the
markets for its products; the rate and degree of market acceptance
of Diginex's products; Diginex's ability to identify and integrate
acquisitions; potential litigation involving Diginex or the
validity or enforceability of Diginex's intellectual property;
general economic and market conditions impacting demand for
Diginex's products and services; and such other risks and
uncertainties as are discussed in 8i's prospectus filed in
connection with its initial public offering and the proxy statement
to be filed relating to the business combination.
Diginex expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Diginex's
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is
based.
[1] Source: Citywire, December
15th, 2020 Lending against Crypto? – A $10bn loan market
emerges as 2020 comes to a close (Link)
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SOURCE Diginex Limited