The crypto industry has evolved beyond a collection of electronically tradable assets.

An entire financial landscape has emerged, and new products are constantly being developed to offer even better interest rates.

Margin lending has been a popular service for many years, offered by old-fashioned stockbrokers and exchanges, but has only recently begun to be found in the electronic money sector.

Traditional brokers, such as Charles Schwab, would provide either securities or fiat to their clients for trading purposes. It is a business that is very profitable for agents as prices can be as high as 11%.

Financial freedom

Decentralized cryptocurrencies based on the blockchain have added a wealth of new possibilities to this scene by becoming synonymous with the democratization of all economic opportunities.

This basically means that anyone is able to lend their crypto assets and earn the interest that agents and businesses have enjoyed for years.

Platforms like Celsius, Nexo, and Pokket have emerged, allowing the high interest earnings to be fully passed on to retail investors rather than the big brokers.

Crypto finance platforms served a simple method that is very long the ICO boom drove prices in 2017 and 2018. The latest report from cryptocurrency credit bureau Credmark shows that the credit market has grown to over $6.4 billion in loans issued by Q3 2019.

Many of the major crypto exchanges allow for some sort of margin trading on some that offer peer-to-peer financing by autonomously matching lenders and borrowers.

Volatility is still a big driver of this space because it leads to high liquidity, which in turn motivates more trading activity. Lending prices can skyrocket when crypto prices rise as traders look to increase their market exposure.

Invictus Capital leading the way in crypto margin financing

Invictus Capital has made a name for itself in the crypto investment space with the launch of several index funds such as CRYPTO20, Crypto10 Hedged, and the blockchain investment Hyperion VC.

The firm’s latest offering is an innovative margin lending fund that allows investors to earn passive, high-yielding dollar-based returns while benefiting from a nascent market that has so far delivered consistent returns well above traditional cash market returns.

The Invictus Margin Lending Fund (IML) outperforms the current short-term savings rate in the U.S., which is just below 2%, by providing a unique opportunity to earn returns in excess of 10%.

The fund also offers compelling benefits that provide a structural complement to returns. These include 24/7 liquidity through an automated contract that is smart and redemptions that allow investors to redeem their tokens whenever they wish to understand the returns.

As the crypto-funding market expands, returns for the IML fund are expected to remain impressive.