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Peer2Peer Finance News | August 18, 2019

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Lend & Borrow Trust acquired by Goldmoney

Lend & Borrow Trust acquired by Goldmoney
Suzie Neuwirth

LEND & Borrow Trust (LBT), the precious metals-backed peer-to-peer lending platform, has been fully acquired by Canadian investment firm Goldmoney.

“LBT is pleased to announce that, in the most recent fiscal quarter, we have been fully acquired by Goldmoney, a TSX-listed, precious metals-focused financial services firm,” the UK-based P2P firm said on its LinkedIn page.

“Since 2017, Goldmoney has provided the essential infrastructure required to safeguard all LBT clients’ precious metals collateral, thereby facilitating borrower access to low-cost financing while reassuring lenders that all pledged collateral is held in safe, secure and established hands. Our full acquisition by Goldmoney will result in additional synergies and enhance efficiencies to the benefit of all LBT clients.”

Read more: Special report on secured lending 

The value of the deal was not disclosed.

LBT enables investors to fund loans secured by physical precious metals such as gold and silver. Loans cannot exceed the market value of the underlying collateral, which LBT says mitigates the risk of the investor losing their capital.

As of 30 June 30, LBT has financed $20.1m (£16.5m) of fully reserved precious metal loans with a minimum interest rate of 3.75 per cent, according to Goldmoney.

Read more: The ultimate collateral

“We are witnessing a monumental failure on the part of the mainstream narrative that has been proselytized since the financial crisis, and as a result, confidence in fiat currencies and financial abstractions of all sorts are fading,” said Goldmoney chairman and chief executive Roy Sebag in the company’s latest quarterly results, released on Tuesday.

“In response, gold has reached an all-time high when measured in most of the world’s fiat currencies and recently has been moving rapidly toward its high watermark in US dollars.

“Our four core businesses [which include LBT] offer our shareholders asymmetric leverage to a rising gold price by earning demonstrable returns on capital from revenue earned in storage, trading, jewellery, coins, lending, and transactions involving physical precious metals.”

Read more: ETHLend borrowers can now post gold-backed tokens as collateral