Roger Roger! Seems like Bitfinex is all ready to dominate the DeFi market via the Hodl Hodl crypto exchange, which it now has a stake in. The popular Hong Kong based exchange plans to add fresh liquidity to lending pool.
The decentralized exchange is one of the few that doesn’t conduct know-your-customer (KYC) checks. This rising DEX provides lending and private transaction services.
And unlike most decentralized exchanges, Hodl Hodl runs on the Bitcoin blockchain.
A move like this seems a bit out of the ordinary for Bitfinex, which is currently the sixth largest spot exchange in the world, and a sister firm of the major stablecoin issuer Tether — it shares executive and corporate ownership with the exchange.
But as revealed by its CTO, Paolo Ardoino, this move made a world of sense for the company:
“When it comes to genuine support of the bitcoin ecosystem, Bitfinex is about action rather than just words. Our investment in Hodl Hodl will help grow its amazing community and support the wider digital token ecosystem.”
Centralized exchanges have been closely watching the fledgling world of decentralized exchanges. And some have even made a few moves, what with the DeFi industry witnessing a boom last year. Names like Binance and FTX dipped their toes in this space.
Bitfinex now wants to provide more liquidity for lending to Hodl Hodl, and this it will do via Tether. USDT is the most popular stablecoin to date. And with demand for lending growing, an institutional provider is just what the doctor ordered.
Be interesting to what kind of regulatory concerns the platform faces, as Bitfinex only recently recovered from a court battle with the New York Attorney General, with the case ending in a settlement.
But this is a power move, nevertheless.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Crypteligence.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.