Jack Mallers' Bitcoin payments app, Strike, announced on Wednesday its entry into the Bitcoin lending business. Strike plans to allow users to borrow fiat currency while continuing to hold Bitcoin. This service, Strike Lending, will initially be available in select U.S. regions with plans for international expansion.
Mallers stated that users should not have to sell Bitcoin to access cash. He emphasized that if Bitcoin grows faster than borrowing costs, the gains from holding Bitcoin can offset loan interest. Several Bitcoin lenders, including BlockFi, Celsius, and Genesis, collapsed during the 2022 crypto winter.
The entry of companies like Coinbase and now Strike suggests a resurgence in Bitcoin lending. This follows the Bitcoin rally that began at the end of last year.
This article is based on our author's analysis of materials taken from the following resource: Coindesk.