THE HOUSE CROWD is the third peer-to-peer lender set to integrate with ASMX’s blockchain-based secondary market.
The peer-to-peer property lender joins asset-backed P2P platform Ablrate and its partner business Huddle Capital in using the new blockchain solution.
Ablrate has been working with ASMX on the new venture, which will enable investors to trade P2P loans from different platforms.
“We are a long way along the line to completing the ASMX platform,” David Bradley-Ward, chief executive at Ablrate and ASMX, said. “We have long been admirers of The House Crowd and we share many of the same predictions on the future of the industry, cooperation of platforms being one of them, so we are thrilled to begin working with them to deliver ASMX to their lenders.”
ASMX intends to join platforms together in a secondary market using its technology platform. Initially this was envisioned to be just for those using technology from Ablrate, although the idea has evolved into connecting multiple platforms and creating economies of scale for lending platforms and loan originators throughout the world, a statement from ASMX said.
By integrating the platforms, ASMX aims to create more diversification for lenders, more tools for lending, and more analysis to make lending more effective.
“Ablrate in the previous quarter traded around £30,000 per day, close to £1m per month with 8,654 trades completed and £18m traded in 2018,” Bradley-Ward said. “The more platforms that are integrated the more volume there will be which we believe is a real benefit to lenders, platforms and the entire lending community from P2P platforms and balance sheet lenders to institutional liquidity providers and lenders.”
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“We have been considering creating our own secondary market for some time, but the costs and complexities involved did not make it worthwhile when our loans are all short term anyway,” Frazer Fearnhead, chief executive of The House Crowd said. “When I read about ASMX I immediately realised what a great opportunity it would be for us to improve our platform offering cost effectively and provide liquidity for our investors.”
ASMX’s technology operates on a low-latency blockchain technology stack, with unique multi-asset, multi-party and multi-directional transaction support, according to the statement. Integration of ASMX’s platform with its low settlement fees could open new avenues for lending platforms and future-proof those lending platforms’ secondary markets, it said.