CELSIUS, an Ethereum-based peer-to-peer lending platform, is set to launch during this quarter.
Lenders will receive up to seven per cent year by depositing coins into the Celsius Wallet that are lent out to the platform’s network of members, according to LeapRate.com.
“Today’s lending market is built for big banks and futures exchanges to rake in profits while providing no benefit for coin lenders and borrowers,” said Celsius founder Alex Mashinsky, quoted on the company’s website.
“Through blockchain, we’re building Celsius to shift the power and earnings back to the coin holders and provide more favourable borrow rates to both sides of the marketplace.”
Furthermore, Celsius borrowers can raise their limits and lower interest payments if they have guarantors who are willing to vouch for them.
New York-headquartered Celsius is not the only cryptocurrency firm tapping into the world of P2P lending.
As Peer2Peer Finance News previously reported, Sikoba, founded by Luxembourg-based financial consultant and researcher Aleksander Kampa, is offering ERC-20 tokens in return for backing a platform that provides a P2P IOU system, extending lines of credit to users who know each other around the world.
And ETHLend, founded by Finland-based Stani Kulechov, is offering LEND tokens to fund a P2P lending platform that issues loans in Ethereum.
Conversely, P2P lenders are tapping into the cryptocurrency space. Crowd for Angels launched a cryptocurrency token for bond investors last November.
Read more: Peer-to-peer Bitcoin lending fund launches