Payments platform Wirex is introducing Wirex Credit for loans backed by cryptocurrency that enable users to borrow up to $100,000 in stablecoins, with a loan to value (LTV) of up to 80%, according to Tuesday (July 5) press release.
“This is a landmark point in Wirex offering more ways for everyday users to utilize crypto, and we’ve made it as convenient and straightforward as possible for our customers to take a crypto-backed loan,” said Pavel Matveev, CEO and co-founder of Wirex.
“Wirex’s vast ecosystem of products means there are huge opportunities for using Wirex Credit, from HODLing to debit card purchases, or using the Wirex Wallet to earn in DeFi protocols,” Matveev added.
The new product gives users access to credit no matter the market conditions. Linked to its app, Wirex is the first company worldwide to develop a crypto-enabled card, according to the release. Credit can be spent wherever Visa or Mastercard is accepted.
“Wirex Credit is set to shake up the competitive landscape, offering a near-instant loan of up to $100,000 issued in USDC, USDT and NXUSD. There will be no origination fee, set up fee, or requirement for credit and affordability checks, and users can borrow up to five lines of credit at once,” according to the release.
Headquartered in London and founded in 2014 by Matveev and CEO Dmitry Lazarichev, Wirex offers seamless and secure ways to store, buy, exchange, spend and earn variable interest on crypto and traditional currency. Its new credit offering adds to its suite of DeFi to CeFi products. At the end of last year, the startup launched a mass-market non-custodial wallet with a biometric access system and next-generation user experience.
Users can transfer loans from the Wirex app to the Wirex Wallet, allowing them to earn crypto from staking and locking after connecting it to DeFi protocols such as Nereus Finance, according to the release.
“Wirex recently invested 5 billion of their native token, WXT into Nereus for its rewards mechanism, where Nereus has since become one of the fastest-growing DeFi platforms ever.” per the release.