Celsius Network recently adopted Dash for the advantages in liquidity, security, delivery and growth to investors with respect to other renowned currencies. Celsius also explained the benefits that they obtain from using BitGo’s custody services regarding the protection of customers’ funds and the loan of funds.
Celsius Network, a digital currency loan platform with more than 50 million dollars in assets under administration (AUA), has added the cryptocurrency Dash to its group of admitted digital assets. When they announced the development this week, Celsius could not help showing their enthusiasm to associate with a vibrant and active community like Dash’s.
The association, which Celsius revealed on Thursday April 11th, will allow Dash holders to use their currencies in the platform and earn interests on an amount corresponding to the moment when their currencies were invested. Among the currencies admitted by the platform, the rates of Dash will be the highest, with a 7.5%, ahead of Bitcoin (5.1%), Litecoin (3.75%), XRP (3.25) and Ethereum (3.15%), among a few other currencies with lower rates.
Celsius said that they hired the services of the BitGo platform to guarantee their customers’ cryptocurrency security, as well as to provide them with compliance and custodial solutions. In order to gain mainstream adoption, cryptocurrencies and blockchain technologies need the trust and investment of financial institutions.
Therefore, Celsius uses BitGo’s custody services as the wallets belong to BitGo. There are a couple of advantages for this association, the first of which is the insurance against any losses caused by attacks to Celsius customers’ funds.
BitGo keeps insurance funds of up to $100 million. In the second place, BitGo can lend the funds in the wallets as coverture funds, exchanges or institutional traders in change of interests (which is part of the amount that a depositor earns when he or she bets his or funds on the platform). The other part is that individual customers can borrow funds from Celsius in the form of loans without fines for anticipated payment and rates that start with 4.95% TAE.
Reasons for Admitting Dash
According to the announcement on Thursday, Dash entered a list after an exhaustive revision process and complied with all of Celsius’ considerations to be included. The most important is the factor of liquidity and the team’s support.
“DASH was included on the list after evaluating our rigorous framework that prioritizes the currencies with high liquidity, team’s professionalism, excellent delivery and, which is more important, a great community that coincides with Celsius’ growing community,” can be read in the notification.
After this addition, Celsius now admits nine digital assets, as well as five stable currencies, including real USDC (TUSDC) and the currency USD (USDC), but it particularly excludes the popular and leading option of Tether (USDT).
The same as Celsius did, investors must consider the fundamental aspects that a cryptocurrency should have before they adopt it definitely. The possibility that Dash generates higher interest rates than Bitcoin is a sensible reason for crypto users to buy this crypto asset.
By Willmen Blanco