Blockchain-based secondary market ASMX is seeking investor feedback over whether to include a diversified investment option, ahead of its launch this summer.
ASMX, which aims to boost the liquidity for investors, saw its launch delayed after originally being set for mid-March.
ASMX and Ablrate chief executive David Bradley-Ward (pictured) said that his team has been testing ASMX and will launch it first for Ablrate investors, hopefully by the end of the month, before opening it out to other P2P lending platforms.
He said an opportunity has arisen for ASMX to work with a fixed income fund that would essentially manage a diversified portfolio across all of Ablrate’s loans.
Bradley-Ward said investors would receive a target rate of eight per cent and any interest achieved above this will be subject to a 20 per cent fee management fee.
He said this fee would be split between the investment manager and an ASMX contingency fund, an accumulative account which would help to offset defaults and keep the target rate to a certain level.
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“ASMX is just undergoing a few tweaks and we’re in the process of connecting it to Ablrate and if we can solve that hopefully we can launch it by the end of the month as Ablrate’s secondary platform,” said Bradley-Ward.
“We’re investigating a diversified portfolio structure for ASMX. We have to go through regulatory structure and see where it fits. One of our intentions is to launch something like this.
“We never intended to have a black box situation but the opportunity arose from one of our tech partners to white label some of their technology which we think would fit very well into the ASMX offering and would allow us to offer a fire a fire and forget option for Ablrate.
“We have had people want this option, but we’ve resisted it because self-select is our core offering and won’t be replaced. This will be another option for those investors that want it.”
Bradley-Ward said there will not be a rush to charge investors using ASMX, but he will once he feels it is the time to do so.
He revealed Ablrate has reached some milestones, achieving over £54m in originations, trading over £46m in its secondary market and making over £9m in payment interest.
“We’re pretty pleased about it,” said Bradley-Ward.
“I’d say it’s a great milestone for us, the secondary market numbers are incredible having originated £54m and traded 80 per cent of it is astoundingly good and shows the trajectory of having liquidity on ASMX is probably the right one.”