Will Crypto Lending Become the Future of Banking?

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As the number of cryptocurrency users grows, these currencies are slowly finding favor with governments and traditional finance systems. More and more enterprises in the public and private sector are adopting cryptocurrencies in their financial dealings, including for making payments, as an investment, and value storage.

Financial institutions were initially hesitant to adopt the use of digital assets. However, as more of their consumers are turning to crypto products, they are now increasingly aware that they should not miss the potential of the efficiency and innovation these assets can provide.

In the meantime, consumers are discovering ways to earn crypto interest through companies like Hodlnaut. Similar to bank savings accounts, these cryptocurrency interest accounts are ideal for those interested in long-term cryptocurrency investing. They not only get to keep their cryptos safe but can also earn an income from them.

Image courtesy of Hodlnaut

Access to financing options

Cryptocurrencies and blockchain technology are not regulated by central banks or any other monetary authorities in any country so far. Since their introduction, digital currencies allow more people than ever before access to financing options that they never had access to. Furthermore, the way people interact with banks has changed, and consumers have warmed to the fact that crypto transactions fees are lower because there is no intermediary involved. Some examples: fees for buying cryptos are lower than bank charges for cash deposits, and retailers accepting cryptos don’t pay charge-back fees to credit card providers that can range between 0.5% to 5%, plus a 20 to 30 cent flat fee for each transaction.

Unless banks start adopting crypto and the technology behind it, they will fall behind, and may even become redundant. Even though cryptos are not regular currencies, they can still be used to carry out all types of transactions because they are easily translated into regular money.

The impact of the popularity of cryptos is becoming more obvious across the globe as the number of people using bank branches continues to drop. 

Benefits of crypto

Despite being a digital medium of exchange, the value of cryptocurrencies is also determined by supply and demand and other current economic factors. However, cryptos have several advantages over physical currencies.

The failure of centralized financial systems to provide credibility and financial freedom has led to the decentralized financial system (DeFi). This system protects consumers from hackers and allows money availability for transactions round-the-clock. Businesses and people in regions where governments control the financial institutions can operate freely and independently of their stifling regulations.

Consumers have full control of how they use and trade their crypto, but they have no safety net if they make an error or lose their private key. This encourages greater financial awareness. Crypto transactions don’t involve a middleman and have far lower costs than bank transactions, making them more convenient and affordable.

Bridging the gap

As countries around the world look for ways to regulate cryptocurrency transactions, some believe that these will contravene the principles on which these currencies were based. Then again, some believe this is an opportunity to bridge the gap between cryptocurrencies and banks, helping to revolutionize the financial system.

Earning APY with Hodlnaut

Founded in 2019 by two entrepreneurs from Singapore, Hodlnaut lends the cryptocurrency holdings of investors to approved institutions. In return, users can earn up to 12.73% APY on their crypto holdings.

Users not only see growth in their BTC, DAI, ETH, USDC, USDT, and WBTC, but these are also safe in transit and storage. Hodlnaut offers innovative financial products to individuals and financial institutions alike without any hidden fees.. Furthermore, users can deposit and withdraw anytime, and there are no lock-in periods or minimum deposits.

“At Hodlnaut, our mission is to help individual investors get the most out of their crypto assets safely and conveniently. We’re working hard to offer products and services to realize that mission.”Juntao Zhu, Co-founder, and CEO of Hodlnaut

Hodlnaut recently introduced a tiering system that allows users to earn bitcoin interest of up to 7.5% and up to 12.73% on stablecoins. The company recently reduced its withdrawal fees, lowering the transaction costs. Investors can opt to earn their interest rates in the crypto of their choice. With an Hodlnaut Interest Account, users start to earn crypto interest immediately. The interest is calculated daily and deposited into their accounts weekly.


Traditional financing systems are not adapting fast enough to the demands of cryptocurrency investors. This is partly due to their reliance on regulations from their governments and central banks. Crypto holders are looking for new approaches and innovations, and the opportunity to earn interest and pay lower fees offered by Hodlnaut is an exciting prospect. Crypto is changing the nature of finance, something which leaves room for Fintech companies to grab the opportunity to innovate, especially as far as the lending and borrowing is concerned.  



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