Upbit to allow crypto collateral in lending service revamp

South Korean crypto exchange Upbit plans to revamp its coin lending service as early as next month, SBS Biz reported. The service allows users to borrow virtual assets against collateral to generate returns, similar to margin trading in the stock market. Previously, Upbit, like its domestic rival Coinone, only accepted the Korean won as collateral. The update will allow users to use virtual assets as collateral, a feature already offered by other major South Korean exchanges Bithumb and Korbit. Additionally, Upbit has adjusted its liquidation threshold, triggering a forced liquidation if the collateral's value falls to 95% of the loan amount. The specific virtual assets that will be accepted as collateral and their respective loan-to-value ratios are reportedly still under discussion.