ETHLEND is in talks with peer-to-peer lending platforms in the UK about providing technology that will enable them to offer crypto-backed finance.
The crypto P2P lender – which lets borrowers request loan amounts and post other digital currencies as collateral as well as paying interest on the loans – has already started providing its software for a Swiss P2P platform called Cashare and is now working on an entry into the UK.
It also ran an initial coin offering last year, creating a tradeable LEND token that can be used to pay transaction fees.
Stani Kulechov, founder of ETHLend, declined to reveal which P2P lenders he was speaking with in the UK, only to say they tended to be mid-sized than larger firms.
“The advantage of this type of borrowing is that someone with cryptocurrency may still want exposure to the asset but needs money to pay a bill,” he said.
Read more: ETHLend unveils launch of new parent company
“By borrowing on ETHLend they will be able to post the cryptocurrency as collateral while they borrow and repay a loan, therefore keeping their asset and also avoiding any tax on having to sell it.”
ETHLend also plans to open a London office near to Old Street – known as Silicon Roundabout – which would house 10 members of staff.
The platform currently has almost 200 active loans and its loanbook is worth more than $2m (£1.5m).
Additionally, its founders are working on a separate platform that will let users pay bills in different forms of cryptocurrency.
This article featured in the December issue of Peer2Peer Finance News, now available to read online.