Given the current growth of cryptocurrency, some financial experts are predicting a migration of financial services from the institutional world to the world of crypto assets, such as Bitcoin and Ethereum. Moreover, the recent hype is encouraging investors with little understanding of the crypto markets to participate in this market.
One London-based startup has set out to capitalize on this opportunity. The team believes that cryptocurrencies have enormous potential, and that they are an asset that will be an important part of most investors’ portfolios in years to come. The team has decided to create something that is badly needed but doesn’t currently exist – an open exchange that will connect borrowers and lenders of digital assets and facilitate secure borrowing and lending across different cryptocurrencies.
In October 2017, Steve Swain and Linda Wang founded Lendingblock.
Lendingblock is the world’s first securities lending platform for the blockchain economy which enables holders of crypto assets to lend them out and accrue interest on their holdings, while giving borrowers access to the assets they need without having to buy them outright.
“Our joint experience and exposure to cryptocurrency allowed us to identify the opportunity and need for a trusted lending marketplace,” says Wang. “It was clear to us that just like in the traditional capital markets, as a market that generated $4 billion of revenue in 2017, the crypto economy required a parallel financial service for securities lending.”
The users who could be interested in Lendingblock’s services is anyone who has assets they would like to earn interest on, which is just about anyone from individuals to large funds and investors. Some good reasons for using Lendingblock’s borrowing services are selling a cryptocurrency short, engaging in sophisticated trading, hedging, and arbitrage.
Progress and roadmap
The team is currently working on the beta version of the lending marketplace which will be launched on Lendingblock’s website this quarter.
In March 2018 the team launched an exchange as an MVP, being followed by a smart contract MVP in April.
Watch for a pre-sale that starts on April 7th and and the main sale that will run from April 15th till 22nd.
The team hopes to launch the platform publicly in August 2018.
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