Crypto borrowing and lending platform Celsius announced today that its total assets have crossed $5 billion. The platform launched its mobile app less than three years ago.
The platform adds more clients
The announcement comes after Celsius acquired over 125,000 new clients. It now has over 340,000 active users across the world. It became the first crypto lending platform in the world to cross $1 billion in total assets. According to a statement, the crypto app has already paid over $200 million to its community in interest. It currently holds 55,000 BTC worth approximately $2 billion.
The native token of the platform, CEL, has also seen significant growth. It entered the CoinMarketCap top 40 list and hit an all-time high of $6.1 in January.
Crypto users want more yields
Celsius Network was founded in 2017. It offers a decentralized lending platform that allows customers up to 10% interest on their stablecoin holdings. It also allows users to earn up to 9.65% interest on Ethereum holdings. The firm raised $50 million in crypto in May 2019 via an ICO. It announced earlier this year that it has over 50,000 BTC in deposits.
The startup lends its assets to retail investors, investment funds, and miners alongside other digital asset companies on a ‘guaranteed and collateralized basis.’ It also allows clients to access other services like an instant deposit of digital assets in the Celsius wallet. Users can get fiat loans by using its currency as collateral. The company says that 80% of the returns coming from these entities are passed on to the holders.
Celsius CEO Alex Mashinsky commented on the firm and said that a record number of institutional and retail users are entering the crypto space and they are looking for more ways to store value. He added, “Our results represent the growing need of savers to diversification and the lack of trust and transparency between financial institutions and the community.”
Celsius accrues interest on a daily basis, which is paid in weekly interviews. Users can also auto-renew their holdings for additional periods after the initial term is over.