Ripio Raises $31 Million in ICO Pre-salebr>
Buenos Aires micro-lending startup Ripio has raised $31 million as part of an initial coin offering (ICO) pre-sale ahead of a new credit network launch. The public ICO will begin on October 24.
Investors in the pre-sale included Blacktower Capital, Blockchain Investors Consortium, and FBG Capital. According to the startup, participants were drawn from various parts of the world like Russia, South Korea and Canada.
Ripio, formerly known as BitPagos, will be debuting its “Ripio Credit Network” in November, a platform that will use the ethereum blockchain to connect borrowers and lenders around the globe, using any local currency.
Ripio’s goal is to scale down traditional credit lending selectiveness and inherent bureaucracy and, at the same time, enhance the solution provided by most peer-to-peer lending platforms by diversifying the lender’s portfolio, mitigating default risks, and magnifying its potential.
The Ripio Credit Network operates on co-signed smart contracts, thus connecting borrowers, lenders, and co-signing agents. While lenders and borrowers connect via RCN tokens, the co-signer insures a sufficient volume of credit transactions to predict its own return on investment, manage the debt in the borrower’s country of residence, and collect the funds in case of a default.
“We are extremely excited, that our pre-sale campaign was supported by both leaders of the blockchain industry and individual investors from all over the world,” said Ripio co-founder and CEO Sebastian Serrano. “Our goal is to widen financial inclusion by extending credit lending globally, and for implementing it we have to have supporters worldwide.”