Hodl Hodl Is Set To Launch a Bitcoin Lending Product without KYC

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Hodl Hodl, a Bitcoin exchange known for its non-custodial approach, has unveiled its plans to launch a lending product without the controversial know-your-customer (KYC) protocol – claiming it as the very first DeFi-based Bitcoin product.

Starting this October, Bitcoin holders may now borrow stablecoins such as USDC, USDT, DAI, and PAX without going through the aforementioned KYC. Bitcoin borrowing will be peer-to-peer (P2P) and shall leave the crypto as collateral for a certain period. This may range from one day up to a whole year.

Different from the conventional crypto lending services we have today, Hodl Hodl’s proposed lending marketplace will not be a custodian. Within Hodl Hodl’s Lend marketplace, borrowers would have to commit their Bitcoin holdings on two of three multisig escrows for the particular loan’s duration. They could only get it back by paying the equal amount of the borrowed crypto. Furthermore, for the funds to be cleared of escrow, transactions must first be signed by two separate keys.

Max Keidun, the CEO of Hodl Hodl, clarifies that all stablecoin transactions will be performed outside the platform, and there would be no option to lend or borrow fiat money. He says that their goal is to eradicate fiat-based risks. Having a third-party or middleman will make that goal implausible.

Keidun adds that Hodl Hodl is aiming to provide its users with a genuine P2P Bitcoin lending platform – wherein they can set their own rules, have more freedom, and be free of the KYC. If everything goes as the exchange planned, Hodl Hodl’s platform could undoubtedly do just that.

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