Introduction to HODL Pay
Bitpay, a company headquartered in Atlanta, has recently launched a new feature called HODL Pay, which allows users to leverage their cryptocurrency assets to obtain stablecoins for making purchases without needing to sell their holdings. This innovative option merges decentralized finance (DeFi) protocols with Bitpay’s extensive merchant network, making it easier for people to manage their digital assets while enjoying the benefits of everyday spending.
Using HODL Pay
To utilize HODL Pay, customers are required to use Aave, a popular DeFi lending platform, as collateral for their loans. Users who already have an account with Aave can instantly access and begin using borrowed stablecoins, while new users need to first deposit qualifying cryptocurrencies. With the stablecoins acquired through this mechanism, users can settle invoices generated by Bitpay for a range of expenditures, including online retail purchases, travel expenses, bill payments, and even gift cards.
Process of HODL Pay
The process is straightforward: when checking out, a customer generates a Bitpay invoice and connects their crypto wallet through Walletconnect, allowing them to borrow stablecoins against the collateral they provided. The management of these loans is handled through Aave’s user-friendly dashboard, which gives borrowers the flexibility to set their repayment terms.
Merchant Integration
Interestingly, merchants who accept Bitpay payments will automatically support HODL Pay, requiring no extra configuration on their part. This feature is particularly designed to appeal to long-term crypto investors by enabling them to spend their assets without liquidating them, thus preserving potential future appreciation.
Transaction Details and Network Support
Transactions made through HODL Pay are settled the following day in a combination of fiat, cryptocurrency, or both. The service is operational on several networks, including Ethereum, Arbitrum, Base, Polygon, and Optimism, and is part of Bitpay’s broader initiative to expand layer two (L2) payment solutions for users within the Web3 ecosystem.
Statements from Leaders
In a statement regarding the launch, Bitpay’s Chief Marketing Officer Bill Zielke expressed enthusiasm, saying, “With HODL Pay, Bitpay offers users an innovative method to spend today without sacrificing their future growth. We are excited to integrate the advantages of DeFi into everyday payment scenarios.”
Nick Dossa from Vegas Auto Gallery commented on HODL Pay’s introduction, highlighting its potential to provide greater flexibility for cryptocurrency customers looking to purchase high-ticket items, such as luxury cars. As of now, HODL Pay is accessible globally to all merchants partnered with Bitpay.
