Bitstamp has partnered with Tesseract to introduce a new crypto-lending service across specific European markets.
Bitstamp is building a crypto-lending product to be tested in selected European countries, including France, Spain, Italy, and Ireland. Moreover, it will be expanded to Hong Kong and United Arab Emirates markets.
The company’s CEO, Jean-Baptiste Graftieaux, said that the company is building a crypto lending product from scratch.
The lending product extends daily incentives up to a 4.4% annual percentage yield (APY) with no rigid lock-up period. The services are available for coins with large market caps like ether (ETH), bitcoin (BTC), Tether’s USDT, Circle’s USDC, and altcoins, including XRP, LTC, APE, LINK, and BCH. It will be live for selected users since March.
Bitstamp has partnered with a Finnish white-label lending company, Tesseract, in this project. All Tesseract borrowers must produce 100% collateral for all loans on stablecoins. The partnership exploits different legal entities to separate user assets and loans from Tesseract’s other ventures.
The lending platform will generate monthly lending performance reports as part of the campaign to make crypto lending more accessible. The reports will contain raw data and processed insights into the product’s performance and risk.
The platform will also process the data into metrics, including the borrower and lender risk profiles, borrower collaterals, and lending portfolio concentration and performance.
The Bitstamp-Tesseract partnership has come at a time when the crypto lending scene is facing a lot of casualties. It has been barely ten months since Celsius, a global crypto lender, collapsed. Blockfi, another lending platform, filed Chapter 11 bankruptcy protection in November 2023 after FTX went down.
For this reason, crypto regulations in the US have become more strict, making companies seek refuge in European markets.