South Korea’s major cryptocurrency exchange Bithumb has officially launched its crypto lending service, allowing users to borrow digital assets by putting up their existing holdings as collateral. With a maximum leverage of 4x, the platform is aiming not only at retail traders but also at high-net-worth individuals and institutional investors seeking enhanced liquidity.
The new service lets users deposit assets like BTC, ETH, XRP, USDT, APT, SOL, ADA, and more as collateral, and borrow other major coins for a set period. The list of eligible tokens is dynamic and may expand depending on market demand.
What sets Bithumb’s offering apart is its generous 4x collateral multiplier. For example, a user who deposits ₩10 million worth of BTC can borrow up to ₩40 million in USDT or other assets. This feature opens opportunities for leveraged trading, liquidity access, or short-term arbitrage strategies.
Borrowing periods start from as short as one day, and interest rates vary based on the asset and loan duration. The platform provides a flexible structure tailored for both long-term holders and active traders.
A Bithumb representative explained, “The service is structured to allow strategic asset management using existing holdings. It’s suitable for HODLers, day traders, and institutions alike.”
While Upbit, Korea’s leading exchange, does not currently offer a comparable service, Bithumb’s move positions it as a provider of premium financial products in the domestic market. Globally, only a few top-tier exchanges provide similar lending or margin services.
However, experts caution that the higher the leverage, the higher the risk. If collateral value drops sharply, forced liquidations may occur. Users are advised to fully understand the volatility risk and interest obligations before participating.
Bithumb plans to expand its lending portfolio and integrate automated risk management tools to solidify its position in the growing crypto finance space.
