OKX Launches Flexible USDC Loans In Europe

OKX has launched crypto-backed USDC loans in Europe, allowing customers to borrow up to 250,000 USDC, or 3.25 million USDC for VIP clients, without a fixed repayment term, according to CryptoNews. Announced on Oct. 9, the service permits European users to borrow up to 80% of collateral value against more than 40 assets, including Bitcoin ($BTC), Ether ($ETH), and Solana ($SOL).

Flexible Terms And Variable Rates

The launch announcement details a variable hourly interest rate of 0.000229%, equivalent to approximately 2% annually. Borrowers are not bound by a set maturity date and can make partial repayments or settle the full balance whenever they choose. OKX directs customers to its rate page for updated borrowing costs rather than applying a fixed charge for the life of the loan.

Erald Ghoos, CEO of OKX Europe, stated that the product addresses the demand of long-term holders seeking liquidity without selling their digital assets. Borrowed funds can be used for trading, participation in the X Drop Club, and Earn products, or withdrawn for everyday needs.

Collateral Rules And Regulatory Framework

Under the service terms updated Sep. 30, OKX Europe Limited operates the offering exclusively for European Economic Area residents. Loan requests are matched with assets supplied by platform lenders, and pledged collateral remains frozen while securing the debt. Positions reaching the liquidation threshold authorize OKX to sell collateral automatically.

Additionally, the exchange's terms explicitly state that the loan service falls outside the scope of the Markets in Crypto-Assets framework, meaning client asset safeguarding protections do not apply to assets connected with it.

Key facts

• OKX launched crypto-backed flexible USDC loans in Europe on Oct. 9.
• Regular clients can borrow up to 250,000 USDC, while VIP clients can access up to 3.25 million USDC.
• The borrowing ceiling is set at 80% of pledged collateral value across more than 40 assets.
• Variable hourly interest is listed at 0.000229%, translating to about 2% annually.
• Terms specify that the loan service falls outside the scope of the Markets in Crypto-Assets framework.