Bithumb Launches Korea's First 'Coin Lending Service'

On July 9, Bithumb announced the launch of its new 'Coin Lending Service,' which supports higher leverage than existing lending services. This service will be operated by its partner company, BlockToReal, which has previously provided lending services. Bithumb will provide the platform.

'Coin Lending' is designed to allow users to borrow up to four times the value of their collateralized virtual assets or Korean won for investment purposes. In a bull market, users can sell the borrowed virtual assets to expand their investment opportunities with more assets. In a bear market, users can sell immediately after borrowing and later repurchase the same quantity of virtual assets at a lower price to repay the loan, thereby realizing a profit. As profits can be realized in both rising and falling markets, this service offers investors a variety of investment opportunities and strategies.

The minimum amount available for Coin Lending is 100,000 won. Depending on membership level, users can borrow up to 500 million won. Currently, the service initially supports 10 types of virtual assets with marketability and stability, including Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). The company plans to gradually expand the range of supported assets depending on market conditions.

The maximum loan period is 30 days. A daily fee of 0.05% of the borrowed amount applies, and an additional risk management fee of 1.00% is charged for automatic repayment. These fees are imposed by the service operator, BlockToReal, and may vary depending on the partner's policies.

Coin Lending has established various preliminary procedures to ensure that customers fully understand the service structure and investment risks in advance. Accordingly, users must complete a three-step process: agreeing to the preliminary terms and conditions, directly entering the service terms, and answering a service-related quiz. Only after passing all three steps can users access the service.

Risk management mechanisms have also been put in place. If the value of the collateralized asset falls to 107% or less of the repayment amount, automatic repayment is triggered to prevent excessive losses in advance. In addition, to minimize market shocks caused by large-scale liquidations, a 'Domino Liquidation Prevention System' has been introduced. This system closely monitors for price distortions and only executes liquidation orders when there is no distortion or after it has been resolved. This temporarily adjusts liquidation trades in the event of abnormal price movements, thereby minimizing the impact on the market.

A Bithumb representative stated, "We are introducing a new partnership service so that users can develop more investment strategies in both bull and bear markets. Coin Lending is an advanced lending service that combines a technical liquidation prevention system and a pre-notification process to minimize investment risk and protect investors. As a responsible platform, we will do our best to ensure stable service operations."