PawnHub is a crypto lending firm based in Hong Kong, and is proud to be the first to obtain the proper licenses from the government of Hong Kong. In addition to this monumental achievement, PawnHub will be partnering with a leading US-based crypto custodian to provide up to $100 million of insurance coverage for clients’ assets.
Their innovative business model isn’t like a traditional lending company, because it allows customers to retain ownership of their assets while having access to liquidity. This model falls in line with the characteristics of Bitcoin – fungible, often instantly transferrable, and divisible. This allows customers to most efficiently invest loans in a number of investment vehicles for as little or as long as they like.
Pawnhub’s location in Hong Kong allows it to cater to several bordering nations, who are some of the largest crypto nations in the world. There’s China, Singapore, Japan, and South Korea as potential countries for immediate expansion as PawnHub grows operation and customer base.
Due to cryptocurrencies still needing to mature, standard financial instruments in more established markets like fiat, such as derivatives, loans, and bonds are just now getting established in the industry. PawnHub is part of a very important next generation of financial services that help make cryptocurrency a more accessible and established form of currency.
Statistics show that PawnHub’s expansion into this area of the market is a smart play as well: cryptocurrency is extremely underleveraged. Compared to the global stock and real estate market which is worth $217 trillion with debt at $244 trillion (so a debt to asset ratio of 80%), cryptocurrency is only worth around $270 billion with a debt to asset ration of 2%.
Both aspects have ample amounts of room to grow. Even if cryptocurrency were to become 10% of what the global market is worth, cryptocurrency would still have to grow to a size of 21.7 trillion, or 100x its current size. The debt to asset ratio would have to grow on a similar scale, if not greater.
Being the first licensed operation in this part of the industry, while being in such a prime location in the world, should allow Pawnhub to explode in terms of customers served in the few following years.
This development comes at a time where other parts of the cryptosphere are developing at a similar pace, meaning the investment opportunities will also grow as well.
More investment opportunities mean more desire for capital, and the positive feedback cycle between lending and investment will allow for not only Pawnhub to grow but the projects Pawnhub’s customers invest into as well.
Bitcoin’s easy accessibility may make Pawnhub’s services a popular option in the future to the unbanked, as many entrepreneurs in developing nations struggle with getting loans due to lack of an account, credit history, or other missing documentation.
Perhaps with PawnHub and cryptocurrency, they’ll be able to get the funds they need and help fund small businesses that fuel local development in their city.