BitPay Introduces HODL Pay: A New Era for Cryptocurrency Payments
BitPay Unveils HODL Pay
In a groundbreaking move for the cryptocurrency landscape, BitPay has officially launched its new payment feature, HODL Pay. This innovative offering allows users to utilize their existing cryptocurrency holdings in a way that streamlines transactions while preserving their investments.
Founded in 2011, BitPay has always been at the forefront of blockchain payment processing, and with HODL Pay, they are once again revolutionizing the experience of using cryptocurrencies for everyday purchases. This feature pairs decentralized finance (DeFi) with ordinary commerce, enabling users to borrow stablecoins against their crypto assets and use them for payments without needing to liquidate their holdings.
What is HODL Pay?
HODL Pay acts as a bridge between the DeFi ecosystem and traditional commerce. It allows consumers to borrow stablecoins against their crypto holdings on platforms like Aave, which acts as collateral for loans. This means that individuals can access immediate liquidity to cover any expenses ranging from vacations and luxury items to everyday bills while still maintaining their crypto investments. In other words, users no longer have to choose between spending and holding their assets.
Simplifying Access to DeFi
Getting started with HODL Pay is designed to be user-friendly. Users need to establish a supply position on Aave, which serves as collateral for borrowing. Those who already have a supply position can begin using HODL Pay right away. New users can easily create a supply position by supplying eligible crypto assets through the Aave platform. Once their position is set, they can generate a BitPay invoice from various sources like shopping with BitPay merchants, enrolling in Bill Pay, or purchasing a crypto-powered gift card.
Payment Process Made Easy
The payment process through HODL Pay is streamlined as follows:
1. Generate a BitPay Invoice: Users can shop with BitPay merchants or engage in other services to generate an invoice.
2. Connect Your Wallet: Using WalletConnect, users link their crypto wallet to the BitPay platform.
3. Borrow Stablecoins: Utilizing their collateral, users can borrow stablecoins and complete their payments directly through the BitPay checkout flow.
Users can monitor their loan status and repayment schedules via the Aave dashboard, ensuring they are always aware of their financial position.
Advantages for Consumers and Merchants
For Consumers
Here’s the crux: HODL Pay provides consumers with a unique opportunity to spend their crypto easily without sacrificing potential future gains. Bill Zielke, Chief Marketing Officer at BitPay, emphasized that cryptocurrency is about financial ownership and freedom. HODL Pay underlines the importance of being able to spend without the fear of liquidation affecting long-term investment strategies.
For Merchants
Merchants also stand to gain significantly from HODL Pay. This new payment method allows businesses to cater to crypto holders who prefer not to spend their digital assets. By facilitating transactions without asset liquidation, merchants can attract high-value customers and drive sales that may not have occurred otherwise. Moreover, HODL Pay doesn’t require additional setup, ensuring that merchants can seamlessly integrate this option into their existing operations.
Nick Dossa, Dealer Principal of Vegas Auto Gallery, noted the potential of HODL Pay in enhancing the purchase experience for luxury vehicles. This service recognizes the growing trend of crypto users and adapts to meet their needs effectively.
Available Now
HODL Pay is active for all BitPay merchants and supports various blockchain networks, including Ethereum, Arbitrum, Base, Polygon, and Optimism. As BitPay continues its mission to facilitate the integration of cryptocurrencies into everyday spending, HODL Pay stands as a promising development for both consumers and businesses alike.
For further details on utilizing HODL Pay or finding participating merchants, interested parties are encouraged to visit the official BitPay website.