Euro-Pegged Stablecoin: The Ultimate Growth Driver for Crypto-Lending

Crypto lending works similarly to traditional lending services, the core difference being that loans are issued on decentralized platforms that lock up cryptocurrencies via smart contracts deployed on public blockchains.

The remaining point of friction? Most crypto lending options incur high losses when exchanging between crypto and fiat currencies.

With the crypto lending industry relying heavily on overcollateralization, lenders can only issue debt on a fraction of collateralized assets.

Euro stablecoins: a viable option for crypto lendingUntil the crypto lending sector takes a considered approach to minimize price volatility between the value of fiat and cryptocurrencies, lenders and borrowers are faced with significant risks.

Overall, the euro looks more stable over the dollar as an underlying asset for both stablecoins and crypto lending.

Lastly, the euro has a killer advantage for borrowers holding crypto - the negative interest rate yield.

Capitalizing on crypto lending leverageWhat's surprising is that to this day, financial institutions do not have the ability to lend fiat currency against cryptocurrency.

To take advantage of the opportunities around crypto lending with a euro-backed stablecoin, a platform would need to consider the infrastructure needed for it to succeed.

What about price volatility? To a certain extent, volatility that matches real-world markets can be a real positive for a crypto lending platform, which may capitalize wh?en liquidations are triggered.

With the crypto lending market growing at an astounding rate, it is guaranteed to disrupt the traditional finance sector even further.