Ablrate’s blockchain-based secondary market ASMX has traded over £3.4m since its launch in October and plans to add machine learning and artificial intelligence (AI) to its process.
The technology, which aims to create or improve liquidty in lending markets and replaced sister company Ablrate’s previous secondary market, traded £70,000 within its first four days and £850,000 within its first month.
David Bradley-Ward (pictured), chief executive of Ablrate and ASMX, said ASMX introduced a liquidity algorithm to the platform, which to date has performed 2,500 trades and is being tested ahead of adding machine learning and AI.
Bradley-Ward said Ablrate launched a test loan this week with partial underwriting from the new ASMX underwriter program, which was filled in 50 seconds on the primary market of Ablrate and sold at par in four minutes on ASMX.
He said the aim for the test was to show that liquidity in the secondary market can benefit not only lenders by being able to risk manage better, but by assisting platforms to stabilise lending flows into the primary market.
“It has been an interesting few months, the £3.4m figure is great, but we have traded over £100,000 per day for the last couple of days, so we know the liquidity growth is there,” he said.
“We have been speaking to a number of platforms which are evaluating the technology for their marketplaces. We are also working on creating market standardisation, liquidity partners and tools so that connected platforms can access greater liquidity for their clients.”
Bradley-Ward said ASMX is in discussions with a number of potential partners for technology roll-outs and new product availability.
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“I think the market will be surprised how quickly we will be rolling out new products and tools,” he said.
“Collaboration with other service providers is well advanced because they see the value in our technology.
“Our focus is very much on making liquidity something that P2P platforms, balance sheet lenders and other originators can tap into via the ASMX technology, just like large debt providers can with securitisations, but at a smaller level.”