What are the benefits of securities lending for digital asset holders?

1 answers

• Mar 19, 2022 · 3 years ago
  Securities lending is a practice that can benefit digital asset holders in various ways. By lending out their assets, holders can earn interest on their holdings, effectively increasing their overall returns. This can be particularly advantageous for holders of large digital asset portfolios. Additionally, securities lending can contribute to market liquidity and price discovery by facilitating short selling and enabling market participants to take advantage of market imbalances. This can lead to a more efficient and transparent market. Moreover, securities lending can provide digital asset holders with a way to hedge their positions or manage risk. By lending out their assets, holders can potentially offset losses in other areas of their portfolio or protect against market downturns. In summary, securities lending offers digital asset holders the potential for increased returns, improved market efficiency, and risk management capabilities.
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