Argentinian Exchange Buenbit Launches Local Currency Loan Product Using Crypto as Collateral

Buenbit, an Argentina-based crypto exchange with operations in Mexico and Peru, launched a local currency loan product Monday that uses crypto as collateral.

Users of the platform will be able to use MakerDAO's stablecoin, DAI, as collateral and withdraw up to one million nuARS, a stablecoin tied to the Argentine peso, the company said in a statement. At the current exchange rate, the maximum amount is equivalent to $3,333.

Federico Ogue, Buenbit's CEO, said the product is the first of its kind in Latin America.

Users can borrow for loans as long as they collateralize 80% of the requested amount, the company stated, adding that the DAI will be locked into the platform yielding returns.

The nuARS stablecoin, which operates on Binance's blockchain, was developed by Num Finance, a firm that also plans to launch nuPEN and nuMXN, two stablecoins tied to the Peruvian and Mexican currencies, respectively.

In Peru, Buenbit plans to launch loans in partnership with Num Finance "shortly," the company said.

In Argentina, users will be able to use nuARS to buy other cryptocurrencies on Buenbit, withdraw or spend them via the prepaid card offered by the exchange, the company added.

In May, Buenbit laid off 45% of its staff​ – approximately 80 employees – due to the "global overhaul" in the tech industry, Ogue said via Twitter at the time. It added that the event was not linked to the crash of UST and LUNA.

The company also halted plans to expand into new countries including Chile and Colombia, Ogue said recently, although he did not rule out new openings in 2023. He did not provide further details.

Source: CoinDesk