Argentine exchange Buenbit Launches Crypto Loans and Plans New Financing
Buenbit, an Argentine crypto exchange with operations in Mexico and Peru, on Monday launched a local currency loan product that uses cryptocurrency as collateral.
Platform users will be able to use MakerDAO's stablecoin, DAI, as collateral and withdraw up to one million nuARS, a stablecoin pegged to the Argentine peso, the company said in a statement. At the current exchange rate, the maximum amount is equivalent to 3333 US dollars. Federico Og, CEO of Buenbit, said that the product is the first of its kind in Latin America.
"This is a model that appeared abroad, but with loans in US dollars, but it does not work for Latinos. Who wants to borrow US dollars in the region? Too much risk," said Og.
Users can borrow as long as they provide 80% of the requested amount, the company said, adding that DAI will be blocked on the platform, bringing profitability. The nuARS stablecoin, which runs on the Binance blockchain, was developed by Num Finance, which also plans to launch nuPEN and nuMXN, two stablecoins tied to the Peruvian and Mexican currencies, respectively. In Peru, Buenbit plans to launch loans in partnership with Num Finance "in the near future," the company said. In Argentina, users will be able to use nuARS to buy other cryptocurrencies on Buenbit, withdraw or spend using a prepaid card offered by the exchange, the company added.
In May, Buenbit laid off 45% of its employees - about 80 employees - due to a "global overhaul" of the technology industry, Og said on Twitter at the time. He added that the event was not related to the collapse of UST and LUNA. The company has also suspended plans to expand into new countries, including Chile and Colombia, Og said recently, although he has not ruled out creating new jobs in 2023. He did not provide more details.
"Exponential growth was more rewarded in the past; now it's sustainability and profit. That's what we have adjusted the plans around," said Og.
According to The company is already negotiating with investors to attract a new round of financing in the third quarter of 2022, which will be insignificant compared to the $11 million Series A that it raised in July 2021.
"This is a smaller round, so as not to embark on a scenario of uncertainty. We will wait to make a bigger round next year with a clearer picture," Og added.
According to the Rsa, Buenbit plans to remain independent and does not want to be acquired, although he admitted that banks and brokers have approached the company about this possibility. Og added that Buenbit plans to obtain a license in Gibraltar in three months after an 18-month process. Bitso, a Mexican crypto exchange, is one of several Latin American companies with a similar license.
https://coin-signal.com/cryptonews/argentine-exchange-buenbit-launches-crypto-loans-and-plans-new-financing/
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