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Matrixport Crypto Lending Review
Matrixport is Asia’s fastest-growing and largest crypto bank. Founded by Bitmain’s former co-founder, Jihan Wu, Matrixport was established in February 2019 as a digital asset bank offering its users an all-in-one solution for crypto investing.
So far, Matrixport has amassed over $10 billion in assets under management and boasts of the security provided by its institutional-grade custody arm called Cactus Custody.
Some of Matrixport’s top services include a crypto exchange as well as a savings account that offers up to 30% APY. Using Matrixport, users can buy cryptocurrencies using their bank account or credit card. The platform also allows for crypto loans together with derivative trading among other products.
Matrixport Pros & Cons
Pros
Comes with a mobile app available on iOS and Android
Users can use the platform to earn interest on their crypto savings
Offers collateralized loans on several supported crypto assets
Offers institutional OTC (over the counter) services
Cons
There is no desktop application
It’s a centralized custody exchange and platform
Limited accessibility in some jurisdictions
Matrixport Overview
Matrixport claims to be one of the world’s most trusted centralized crypto banking platforms with a selection of products that are designed to help crypto enthusiasts invest and access financing in the easiest way.
With a total of more than $700 million in outstanding loans, another $10 billion in assets under custody, and a $5 billion trading volume, Matrixport has had tremendous success in the short time it has been active.
Matrixport’s main attraction points are the fact that its spot market exchange service comes with zero fees. Matrixport also offers derivatives trading thanks to the company’s partnership with bit.com.
Matrixport users can also use the platform’s OTC services which can process up to $50 million in trades per day. Other relevant services that Matrixport offers include instant approval of stablecoin loans on crypto collateral. The platform also offers attractive yields on BTC, ETH, USDT, and USDC savings.
Matrixport Fixed Income Investments
These are investment options on Matrixport that allow users to lock their cryptocurrencies (e.g. BTC or ETH) for a given time in exchange for a fixed yield at maturity.
Matrixport offers a wide range of fixed income investment products that cover a period of 1 to 240 days. Investors can lock their funds in the form of USDC or USDT stablecoins as well as other supported currencies like Bitcoin and Ethereum.
Matrixport Supported Cryptocurrencies
At the moment, Matrixport supports the following cryptocurrencies on its platform:
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
- USD Coin (USDC)
- Bitcoin Cash (BCH)
- Tether USD (USDT)
- Dash (DASH)
- Ripple (XRP)
Matrixport Dual-Currency products
If you are an investor with a higher appetite for risk, Matrixport offers the Dual Currency investment product which is a potentially highly-returned investment vehicle that offers a higher return.
With the Dual Currency product, the yield an investor earns is secured but only at the time of purchasing the product. This product is then settled in a currency whose value changes based on the compared value of the settlement price as well as the linked price of the currency.
Crypto Loans and Interest Accounts
With Matrixport, you can get an instant loan with your crypto holdings and avoid liquidating your cryptocurrencies for fiat spending.
Matrixport offers competitive rates of 60% LTV (Loan-To-Value) ratio and at zero interest thus facilitating high levels of capital utilization with minimal liquidation risks. What’s more, Matrixport also customizes loan products that fit the varying needs of its users.
Matrixport Institutional Services
With a client list of over 300 institutions, Matrixport’s main clients entail large crypto miners, token funds, trading firms, and hedge funds. Matrixport’s institutional services include an OTC service that offers low-cost access to liquidity on major cryptocurrencies.
Matrixport claims that its OTC desk currently services $50 million in daily trades. The platform also offers institutional custody through Cactus Custody (a third-party institutional custody firm in Hong Kong). Metrixport claims that Cactus Custody is compliant with regulations and follows KYC and AML requirements.
Matrixport Derivative Trading
Thanks to its partnership with bit.com (a high frequency, high-performance crypto exchange) Matrixport can offer its clients a low latency derivatives exchange with options such as perpetual swaps and futures trading. Users can also conduct spot trading of these derivatives with support for trading cryptocurrencies such as BTC, BCH, and ETH at 50x leverage.
Is Matrixport Safe?
Matrixport offers a variety of safety features for user’s funds.
Throughout all its services, Matrixport offers the security infrastructure of its cutting-edge Cactus Custody. Users’ assets are always stored offline with wallet addresses whose private key plaintext is not visible to staff. Their custody solution also uses multi-signature mechanisms with data centers that feature a heterogeneous design.
Matrixport’s mobile app also comes with mandatory two-factor authentication and high-levels of encryption measures.
Matrixport Frequently Asked Questions
At the moment, Matrixport does not offer stocks trading or investment options.
Compared to the competition, Matrixport offers a higher quality of services fit for institutional traders as opposed to only retail crypto investors. Matrixport comes with a customizable service and a highly attractive zero-interest loan product to mention a few.
This is a type of knock-out option that introduces barriers to growth in structured wealth management products. As the coefficient increases, a trigger is set off placing a barrier to a user’s wealth growth. This enables investors to access wealth management products that reflect levels of benefits and risks.
Some of Matrixport’s best security features include the alert that can be set whenever losses occur with assets in the fixed income account. These real-time alerts can help an investor set up stop-loss orders quickly. Matrixport also offers institutional-grade custody of assets as well as a mandatory two-factor authentication.
