Lendo launches a ‘cash for crypto’ revolution
The Lendo launch is set to become one of the attention-grabbing stories of 2018. And the coming year is just the start of the journey for Lendo Ltd, a UK-registered Fintech company that is expanding the conventional personal loans market by enabling the United Kingdom’s FCA-registered lenders to offer loans in fiat currencies against crypto assets used as collateral.
Lendo offers a unique product range that forms a cryptobanking ecosystem, and at the core of its platform is its Crypto Vault built with ultra-secure proprietary software that will store borrowers’ crypto assets (BTC, ETH & LTC) for the period of a personal loan.
Transforming consumer credit choices
Until now, conventional lenders have had not the know-how to offer owners of Bitcoin and other major crypto coin assets loans against these currencies as collateral. Now they can and it’s great news for both the lenders and the borrowers.
With 2017 proving to be a sensational year for the Bitcoin price, owners prefer to HODL (Hold On for Dear Life) their coins and are anxious to avoid selling them. Now, when they need a loan for a new car, medical bills or other expense of any kind, they can get a loan in fiat currency without selling those valuable crypto assets.
From the conventional lenders’ perspective, they get a new breed of customers with crypto assets, but even more sensationally, UK lenders will be able to make loans outside the UK’s financial jurisdiction, because every loan is controlled by a smart contract on the blockchain. Ordinarily this would be impossible, because lenders wouldn’t be able to reclaim any defaults on repayments; the smart contract removes that barrier to making loans worldwide. Lendo already has an agreement in place with a well-established, FCA-regulated lender in the UK who will pilot the scheme in early 2018 and they will both be making an announcement about this partnership in the near future.
The consumer credit market is growing
In the UK alone it reached £229.6 billion in 2016, according to the Bank of England. As Lendo CEO David Honey says: “A mere 0.1% share of the UK consumer credit market would bring revenues of close to 20 million per year, based on an average APR of just 10% on funds lent to the market.”
Banking in Outer Space
But, the Lendo story doesn’t stop at exploding the hugely valuable consumer credit market; it has even bigger designs, including securing its users funds from theft by hackers by placing its Crypto Vault, the encryption key or its ledger on a satellite in outer space. Honeyman said: “If we can’t get the entire vault on a satellite, we will at least get part of it on, especially the key encryption. That should keep every client’s assets out of the reach of hackers.”
The technology that keeps crypto assets secure from theft, from snooping by government agencies and from jurisdictions hoping to claim taxes, is a reality and Lendo has a team working on building the solutions.
From crypto collateral to crytpobanking in outer space — Lendo will change lending — one of the oldest financial sectors in the world — and bring it into the digital future.