AAVE Lending, a new service that allows companies and individuals to leverage digital assets for loans, has signed Switzerland’s largest peer-to-peer platform, Cashare, as its first client.
Aave Lending claims to be the first turnkey SaaS solution in the blockchain space that allows creditors to start their own digital asset-backed lending business.
It takes care of secure collateral storage, notifications and liquidation on margin calls. Aave, the Swiss technology company, is behind the new venture.
“By providing digital asset-backed lending in addition to fiat loans, we’re able to offer investors the ability to participate in the crypto industry with an attractive return while maintaining a high level of security since all loans are asset backed,” said Michael Borter, chief executive of Cashare.
Aave piloted the product with ETHLend, a cryptocurrency-backed P2P lending platform, which has so far generated more than $15m (£11.6m) in lending volume since launch.
“ETHLend pioneered decentralised P2P lending with its initial platform, and with Aave, we’re working to expand that vision into digital asset-backed lending for both businesses and individuals,” said Stani Kulechov, chief executive of Aave.