Lock BTC, Get DAI: Lending Firm Br Oct 29, 2019 at 13:00 UTCю Lock BTC, Get DAI: Lending Firm Br

Lock BTC, Get DAI: Lending Firm Br Oct 29, 2019 at 13:00 UTCю Lock BTC, Get DAI: Lending Firm Br

Leigh Cuen

Lock BTC, Get DAI: Lending Firm Br

Canadian startup Ledn, that offers bitcoin-backed fiat loans, now offers dollar-pegged DAI loans, linking bitcoin users with ethereum’s decentralized finance (DeFi) ecosystem.

Ledn co-founder Mauricio Di Bartolomeo, A venezuelan expat, told CoinDesk this brand new partnership with stablecoin promoter MakerDAO had been driven by client need.

Away from “thousands” of users, over fifty percent of Ledn’s users are in Latin America, Di Bartolomeo stated, where ethereum-backed DAI is increasingly regarded as an alternative solution to dollar that is strictly regulated. The central bank of Argentina restricted civilians to buying only $200 in USD per month, down from the previous $10,000 in fact, this past weekend.

“In Argentina, they convert it immediately to ARS (Argentinian Nuevo peso), mail order bride and you lose money, ” Nadia Alvarez, MakerDAO’s head of business development in Latin America, told CoinDesk if you receive a bank transference in USD. “We understand BTC hodlers don’t want to market their BTC, however they require liquidity, with their expenses that are daily. This is the reason we think this can be appropriate for Latin America. ”

Ledn is not the company that is first realize that bitcoiners are hopeful for usage of the ethereum community’s experimental loan items. Silicon Valley startups within the Cross-Chain performing Group may also be focusing on a solution that is different enable wrapped bitcoin tokens directly regarding the ethereum blockchain.