A NEW crypto-backed peer-to-peer lending platform is looking to launch with the help of an initial coin offering (ICO).
Lendingblock, which lets individuals lend in a range of digital currencies such as Bitcoin, Ethereum and Ripple, is looking to raise a minimum of $10m (£7m) for its LND token.
The tradeable token will be used to pay interest and platform fees.
A private sale has already raised $500,000 and a pre-sale for the ICO begins on 7 April ahead of the main sale, which launches on 15 April.
Unlike other crypto-backed P2P platforms, Lendingblock uses various blockchains, meaning lenders and borrowers can use multiple digital currencies rather than just one.
Borrowers post the amount and type of digital currency they require and which cryptocoin they can provide as collateral and lenders choose who they want to provide funds to.
Once agreed, a contract is established on the blockchain and payments are tracked.
At the end of the loan, the repayment is distributed to lenders and the collateral is returned to the borrower
The platform has been launched by Linda Wang, who co-founded robo-advice software provider Lendr and Steve Swain, who was a former partner at Deloitte and investment banking technology managing director for UBS.
“Essentially, Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets, a market that has $2trn of assets on loan and generated $4bn of revenue in 2017,” Swain said.
“We believe that the market for securities lending will be replicated in the blockchain asset economy, particularly in light of the continued growth in value of the crypto-asset market and the entry of institutions and funds. Lendingblock is designed to facilitate this growth of securities lending in the crypto economy.”
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