VALR launches crypto-collateralized borrowing service

VALR, a cryptocurrency exchange and infrastructure provider in Africa, has launched a new product called ‘Borrow’. This service allows both individual and corporate clients to access liquidity by using their cryptocurrency holdings, such as Bitcoin and Ethereum, as collateral.

By utilizing the borrowing feature, users can obtain funds without selling their underlying assets, allowing them to maintain exposure to potential price increases. Borrowed funds are instantly credited to VALR accounts and can be used for trading, conversion to fiat, withdrawals, or spending via VALR Pay.

The process is fully automated and does not require traditional paperwork or credit checks. Instead, loan limits are determined by the value of the selected collateral and the specific risk profile of the asset. The service offers flexible repayment terms with no fixed schedules or early settlement fees.