Celsius Network Now Supports Tether At 12% Interest
Users will be able to receive interest in USDT or CEL tokens
Celsius Network will begin supporting Tether (USDT), the largest stablecoin in the market, in its interest-earning wallet. That will enable users to leverage their holdings in order to receive a passive income.
Announced today, the news means that USDT will become the twentieth coin supported by Celsius Network. Users will be able to earn interest of up to 9.75% from their Tether deposits, or as much as 12% if they opt to take their payment in CEL tokens.
According to the new lending comparison feature on CoinMarketCap, that places Celsius within the middle range of interest rates currently on offer. It’s higher than the likes of Bitfinex, but still lower than rivals Binance and Crypto.com – who currently offer up to 10% APR.
Borrowers can also take advantage of the integration, as Tether is now available as a supported currency for the Celsius retail loan offering. Users who post collateral of digital assets can borrow USDT at interest rates as low as 3.5%. Celsius also recently lowered the minimum loan amount to $15,000.
Celsius Competing in a Growing Market
Crypto lending has rapidly risen in popularity over the last two years. For lenders, it offers the opportunity for returns on cryptocurrency holdings beyond pure market fluctuations. Borrowers can get all the benefits of a loan without having to go through a bank.
Lending has fast become the most popular use case in the emerging field of decentralized finance. It accounts for more than 80% of all value locked in smart contracts according to data provider, DeFi Pulse. The rise in popularity has also seen new entrants into the market, including Binance, which announced its own lending facility back in August.
But Celsius Network remains the biggest among centralized lending platforms. Its model of redistributing 80% of its income to depositors has enabled it to grow rapidly, even though it is still a relatively young company.
Earlier this year, it announced it had topped $300m in coin deposits and $2bn in loan origination just from its first year of business.