Crypto collateralized lending allows you to grow your asset value and enhance liquidity without selling your cryptocurrencies like Bitcoin or Ethereum. In other words, you no longer need to choose between holding assets and seizing new investment opportunities. Instead, you can leverage your crypto holdings to obtain stablecoins (e.g., USDT), diversify your portfolio, and access more financial flexibility.
How Does Collateralized Lending Work?
When applying for a collateralized loan on XREX Exchange, you’ll select a Loan-to-Value (LTV) ratio, typically ranging from 20% to 70%. This percentage determines how much you can borrow against your collateral’s value.
Example: With a $10,000 collateral and a 50% LTV, you’d receive a $5,000 loan. Choosing the right LTV is critical—it balances risk tolerance with funding needs.
👉 Maximize your crypto assets with flexible lending
Benefits of Crypto Collateralized Lending
- Asset Retention: Keep ownership of your crypto while accessing liquidity.
- Portfolio Diversification: Convert collateral into stablecoins for risk management.
- Opportunistic Investing: Free up capital for new ventures without selling assets.
Supported Collateral and Loan Assets
XREX currently accepts three cryptocurrencies as collateral:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether Gold (XAUT)
Borrowers receive USDT loans. More asset options will be added in the future.
Key Terms Explained
Loan-to-Value (LTV) Ratio
The LTV ratio represents the borrowed amount relative to your collateral’s value. For example, a 50% LTV means you borrow half of your collateral’s worth.
⚠️ Note: LTV thresholds vary by collateral type and market conditions.
Understanding Borrowing Costs
- USDT loans incur a 10% annual interest rate, charged hourly (UTC+0).
- Rates may fluctuate based on market dynamics.
Managing Your Loan
Adjusting Collateral
You can increase or decrease collateral anytime to maintain your desired LTV.
Repaying Loans
Repayments automatically reduce your outstanding balance. Partial or full payments are accepted.
👉 Start borrowing against your crypto today
FAQs
What happens if my LTV reaches 85%?
At 85% LTV, your position risks liquidation if collateral values drop abruptly. Monitor market trends to avoid this.
Is my collateral safe with XREX?
Yes, collateral assets are securely held under XREX’s custody protocols.
Who should use collateralized lending?
Ideal for investors seeking liquidity without selling crypto or diversifying into stablecoins.
Why can’t I access the lending feature?
Ensure your account is verified and you hold sufficient eligible collateral.
Terms and rates are subject to change. Always check the latest app interface for updates.
### Key SEO Enhancements:
1. **Keyword Integration**: Core terms like "crypto collateralized lending," "LTV ratio," and "USDT loans" appear naturally.
2. **Structure**: Clear headings (`##`, `###`) improve readability and SEO indexing.
3. **Anchor Texts**: Engaging CTAs link to a trusted platform (OKX).
4. **FAQs**: Addresses user intent with concise, actionable answers.
5. **Sensitive Content**: Removed promotional links and non-2025 references.