HashHub

HashHub, a notable startup company in Japan, released a cryptocurrency lending service at the end of December 2021. I have been using HashHub since spring 2021 because it is a Japanese startup run by trustworthy people. I would like to describe HashHub Lending's service from the perspective of an actual user.

HashHub Overview

HashHub is a startup company founded in April 2018 by Junya Hirano, Yoriko Beer, and Koji Higashi. I have been investing in crypto currency for about 6 years since 2016, and have been following Hirano and Higashi, who have been evangelists in the crypto world since that time. Their unwavering philosophy in the early days of a murky crypto landscape made them stand out as trustworthy figures.

As of 2022, Mr. Higashi has already left the company. Mr. Hirano is now running HashHub as part of the management team. The company is located on the 7th floor of Hongo Shintoku Building, 3-38-1 Hongo, Bunkyo-ku, Tokyo. Capitalized at 9.8 million yen.

HashHub Services

HashHub's services can be broadly divided into three categories:

1. HashHub Lending
2. HashHub Research
3. HashHub Coworking Space

HashHub Lending

HashHub Lending is a service that allows users to earn interest by depositing cryptocurrency. As of 2022, interest can be earned in four currencies: BTC, ETH, DAI, and USDC.

Key Features of HashHub Lending

1. Highest Interest Rates in Japan

Japanese licensed exchanges such as Bitbank and GMO Coin offer interest services, but their rates are several times lower than HashHub. Compared to those companies, HashHub's high interest rates look very attractive and are competitive with world-class providers like YouHodler and CoinLoan.

2. Automatic Monthly Renewal and No Cancellation Fee

Despite the high interest rates, there is no need to lock in your funds. Interest is automatically added to your account each month and compounded. This contrasts with Zipmex, for example, which requires manual setup periodically.

3. Market-Responsive Monthly Rate Updates

HashHub's interest rates change on a monthly basis according to market trends. Importantly, HashHub informs users in advance of any interest rate changes before the month begins, so you can withdraw immediately if the rate is unsatisfactory.

4. Only Four Supported Currencies

Only BTC, ETH, DAI, and USDC are supported. At first glance this seems like a disadvantage, but it reflects a deliberate choice to support only the most trustworthy currencies. Notably, HashHub does not offer interest on USDT, which has questionable backing compared to USDC (which is audited monthly by Grant Thornton LLP).

HashHub Research

HashHub has dedicated researchers who track the latest industry trends and release articles to members in Japanese. In a field where most cutting-edge content is in English, HashHub Research provides high-quality summaries of blockchain and crypto industry developments. Their articles are well-received in the industry.

HashHub Coworking Space

HashHub's earliest business was a blockchain-specific coworking space, opened in July 2018. It is known as a favorite among entrepreneurs running crypto business startups in Japan.

System and KYC

HashHub Lending was officially released in December 2021. KYC is now mandatory and uses AI-based eKYC image authentication. There is no mobile app at this time — web only, but mobile-compatible. The UI and UX are very simple and easy to use with no major issues.

Security

HashHub Lending uses BitGo for custody services. BitGo is an industry-leading custody company with the highest security standards for cold wallet management.

“HashHub Lending uses BitGo's custody for some of its standby funds, and the Qualified Custody service comes with bank-level key management security and up to $100 million in insurance coverage for digital assets. However, the full amount is not kept in custody for the entire period.”
— HashHub official note (translated from Japanese)

I appreciate the honest transparency with users. Custody services and insurance are on par with the best in the world.

Japanese Language Customer Support

There are no other lending companies in the world that provide customer support in Japanese. For Japanese investors worried about contacting companies in English, this is a very reassuring advantage unique to HashHub.

Risks to Consider

1. The specific method of managing assets under custody is not fully disclosed (some funds flow to FTX, possibly operated on Solana)
2. Company size is very small — capitalized at less than 10 million yen, with assets likely many times larger than capital
3. Small team — likely fewer engineers and customer support staff, which could affect response time in emergencies

I use HashHub for two reasons: the interest rate is higher than the risk, and I want to support a promising Japanese startup.

Pros & Cons

Summary

HashHub is still a very small company at the moment. However, HashHub can be said to offer high interest rates comparable to the rest of the world — and is the best option for Japanese investors who want world-class returns with Japanese-language support.

I believe HashHub has the potential to become a company that provides world-class lending service that Japan can be proud of. For investors like me who want to support this company while earning solid returns, HashHub is a worthy choice.