Japan’s GMO Wants to Borrow Bitcoins from Customers

Japanese internet giant GMO has launched a service to allow customers to lend their bitcoins to the company. Customers’ bitcoin balances will be debited from their GMO Coin trading accounts once loan agreements have been reached.

"Virtual Currency Rental Service is a service that allows you to rent out the virtual currency held by the customer to the company so that you can receive the rental fee according to the quantity of the lent virtual currency."

Interested customers can apply to participate in the program between April 11 and May 2, after which there will be a drawing. Currently, only bitcoin (BTC) will be supported. Customers need to specify the quantities they wish to lend in units of 10 BTC, with the minimum quantity being 10 BTC and the maximum being 100 BTC.

The loan period is 90 days. On the settlement date, the company will return to the customer “the same type.. [and] the same amount” of the cryptocurrency borrowed, plus interest. However, customers can recall the loan early and “within five business days after accepting cancellation at our company, we will redeem the virtual currency less the cancellation fee,” GMO Coin detailed.