According to ChainCatcher, Mercado Bitcoin, one of the largest cryptocurrency exchanges in Brazil, announced the launch of a lending product that uses cryptocurrency as collateral and will be paid to users in the local currency. This is the first such product launched by the company, which obtained a payment institution license issued by the central bank last year.
To avoid the high risks associated with liquidation, Mercado Bitcoin will limit loans to 30% of the exchange users' positions. The exchange holds more than $900 million in crypto assets, which means more than $300 million in credit capacity.