Digital currencies are not regulated by the FCA. This means you will be unable to rely on the Financial Services Compensation Scheme or Financial Ombudsman Service. As your cash has been converted into a stablecoin or cryptocurrency, it is not subject to the same safeguarding arrangements as the funds in your cash account.
Lending your funds
The lending platforms that we partner with are based in the UK, Europe and the US. All of our partners and their borrowers are subject to due diligence. However, with cryptocurrency, the value of investments can go down as well as up.
In any lending arrangement there's always a possibility that a borrower could default and the worst case is that you may not get back the same amount of stablecoin or cryptocurrency as you have lent to Ziglu - your capital is at risk.
As the stablecoin or cryptocurrency held in your Boost account is lent out behind the scenes, it is no longer held by Ziglu on bare trust for you.