The ability to use commonly held assets like
$ETH $NVDA $SPY or
$TSLA as collateral continues to grow. This is important for any asset and it should be watched, because it increases utility and inherent value.
Longbow recently added Fixed rates to our “borrow” product that lets customers borrow cash using popular tickers as collateral.
There are now multiple options to borrow against what you hold. For example, you deposit your
$ETH as collateral at attractive rates and get USDG, which can be immediately convertible to USD, then a quick transfer to your linked bank account.
You can choose to repay the loan whenever you want, at which point you get your
$ETH back (so you retain any future price appreciation).
That’s a very attractive option for various types of borrowers ranging from individuals to small businesses. We're surprised by how many people — even veterans of the
$ETH space — don’t seem to be aware of how easy this process has become, or that it even exists.
But make no mistake: This is huge financial innovation. Keep watching as
$ETH collateral usage grows. Over the long term, it’s important.