BitPay today has now launched Hodl Pay, a new feature payment designed to let crypto users borrow stablecoins against their crypto holders and spend without liquid their owners.
Hodl Pay allows consumers to use their deposit collateral at Aave, a leading defi lending protocol, to borrow stablecoins and immediately spend them through the BitPay merchant network. The service lives on many Layer 2 networks including Ethereum, arbitrum, polygon, optimism, and base, which aims to offer low cost and quick settlement to users.
“Crypto is not just about speculation -awareness. It’s about owner of finance, freedom, and choice,” said Bill Zielke, chief officer of Marketing at BitPay. “With Hodl Pay, BitPay gives users an innovative way to spend with confidence today without giving up their future growth.”
The timing of the launch is aligned with a wider crypto trend: more users are reluctant to part in their long-term handling as prices show signs of another bull cycle. By borrowing stablecoins such as the USDC or DAI instead of selling bitcoin or Ethereum, users can maintain their exposure to potential upside down while opening immediate liquidity for purchases derived from expensive cars to the sunny retailer.
By integrating it into Aave, Hodl Pay allows any user with a supply position – means the crypto deposited as collateral – to immediately borrow against it. After connecting their wallet via walletconnect, users can generate a bitpay invoice and complete the checkout transaction using borrowed stablecoins.
From a merchant point of view, controlling does not require additional integration. Businesses continue to receive the next day settlement on Fiat, Crypto, or a combination of the same-one of the long benefits of BitPay. BitPay says Hodl Pay can help traders get the transactions of higher value by appealing to long-term holders that usually avoid sale.
Nick Dossa, a dealer’s chief at the Vegas Auto Gallery, one of the many luxurious retailers receiving the crypto by the BitPay, accepted the move. “We are excited to see new options such as Hodl Pay providing crypto holders who are more flexible in paying for expensive vehicles. This is a forward solution that will help deepen our connection to the crypto community,” he said.
Launching Hodl Pay came as BitPay continued its push to expand the support of Layer 2 and cement its role as a crypto payment leader amid growing competition from fintechs such as Moonpay and Coinbase Commerce. While rivals focus on the direct integration of the purse or off-ramp on Fiat, the bitpay positions itself in the squarely at the intersection of the DEFI and payment.
With the crypto lending rebounding and institutional defi adoption in the rise, Bitpay’s move can tap into a growing segment of users who want to use their digital wealth without this. It also signifies the growing confidence in the security and scalability of defi protocols such as AAVE, which is sometimes considered a niche, now in the main applications of the basic.
The BitPay’s merchant directory has enrolled the way – businesses – from tech retailers to real estate agents – are now accessible via Hodl Pay.
While crypto becomes increasingly intertwined with conventional financial behavior, the bitpay is a bet that spending without selling can be a determining theme of this cycle.
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Image credits: Bitpay, Canva