Blockchain Lending Platform ETHLend Aims To Expand To Fiatbr>
Decentralized lending platform ETHLend is planning to expand its current crypto-to-crypto business model to cover fiat lending, whereas users can pledge cryptocurrencies and receive fiat currency as a loan.
Built on the ethereum blockchain, ETHLend provides a global lending market that connects lenders and borrowers from all over the world, offering secured loans with the use of ERC-20 compatible digital tokens as collateral. In November 2017, it raised $10 million in the first 30 minutes of its initial coin offering (ICO).
The company said it has begun a licensing process that will allow them to operate in more than 30 countries in Europe. It also intends to pursue licensing in the US on a state-by-state basis, and in selected countries in Asia. If ETHLend is successful, it will broaden its current business model to provide finance in form of fiat currencies such as EUR, USD, and GBP against cryptocurrency holdings.
“Our initial goal was to provide cryptocurrency lending with the use of digital assets as a collateral for the loans. However, due to the vast amount of requests, we are comfortable to announce today that ETHLend will expand the current crypto-to-crypto business model to cover fiat lending,” ETHLend CEO Stani Kulechov said in a statement. “The ETHLend team feels that there is a need for a smart contract based transaction system within the fiat-to-crypto lending ecosystem.”
The company also said that it is raising the bar for compliance in crypto-lending. The company will be implementing know your customer (KYC) identification during the Q2 on the decentralized application by using a third party KYC provider. It will also comply with all the applicable data protection laws.
“The ETHLend team considers safety and compliance as one of the most important factors in crypto lending,” Kulechov said. “As crypto-to-crypto lending is becoming more popular each day, it is more than vital that lenders and borrowers are able to conduct safe and compliant transactions. By being able to guarantee such security and safety, ETHLend can be distinguished to become a reputable and safe marketplace for collateral based cryptocurrency lending.”
Last year, ETHLend announced a strategic partnership with trading platform Brickblock to explore further blockchain lending opportunities. Brickblock aims to connect real-world assets and cryptocurrencies to create a new generation asset trading platform. With Brickblock, people can trade their exchange-traded funds (ETF), real estate and cryto funds on the blockchain.