Russian pawnbroking group MGKL plans to launch digital asset-backed lending business.
TL;DR
Russian pawnbroker MGKL plans to launch a digital asset-backed lending business, starting with cryptocurrencies as collateral and expanding to other digital assets. The company will consult with Russia's Central Bank to establish rules, aiming to enhance market transparency and reduce gray market risks.
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PANews reported on January 14th that, according to Finversia, the Russian pawnshop group MGKL announced plans to launch a digital asset-backed lending business. Initially, it will accept cryptocurrencies as collateral, with plans to gradually expand to a wider range of digital asset types, including tokens, digital collectibles, and virtual economic items (such as in-game items).
The company stated that it will consult with the Central Bank of Russia to clarify the rules for handling digital assets in pawnbroking, in order to promote the formulation of relevant laws and operational procedures. MGKL's management believes that the pawnbroking industry's participation in the digital asset market will help improve the market's transparency and legality, reduce the risks of gray market transactions, and lay the foundation for the emergence of new financial products. The company has noted the growing interest among customers in incorporating digital value forms such as cryptocurrencies into collateral.