Blockchain services firm Eqonex Group has launched a peer-to-peer crypto lending marketplace.
This follows a licensing agreement with Lendingblock, a lending platform for cryptocurrencies and digital assets, which has seen Eqonex integrate Lendingblock’s technology.
The Nasdaq-listed company hopes the new marketplace, known as Eqonex Lending, will transform the institutional crypto lending market. They plan to do this by providing an open order book – an approach that differs from other crypto lending transactions which are currently undertaken on an over-the-counter (OTC) basis, with little transparency over rates. Eqonex, formerly Diginex, said this practice stifles competition and makes markets less efficient.
The new approach enables institutional lenders and borrowers to interact directly and the open order book will allow exchange participants to view the market rates on offer. In addition, Eqonex will offer an OTC lending service, with rates visible on the platform.
The marketplace will provide an automated workflow, which manages the entire loan lifecycle. Eqonex says this eliminates settlement risk, actively manages collateral to protect the lender from default risk and substantially reduces the operational risks normally associated with manual loan processing.
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The new platform integrates with the Eqonex ecosystem, which includes digital custodian Digivault, which recently received approval from the Financial Conduct Authority as a custodian wallet provider.
The company pointed to the strong growth seen in the crypto lending market and suspects this is just the beginning.
“We’re very excited to have launched what we think will be a transformational product for the institutional lending market, enabling a broad range of companies to come together across a safe and transparent venue that combines proven capital markets financial concepts with blockchain technology,” said Charlie Beach, head of Eqonex lending.
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