In the financial sector, p2p-lending projects are gaining popularity. The technology of the distributed register allows using lending services without attracting traditional financial intermediaries in the form of banks. Instead, users can borrow or lend through specialized platforms, which makes this process faster, cheaper and safer, and does not require users to provide credit history information. We reviewed the most promising platforms that completely change the crediting process through distributed registry technology.
The loan platform for SALT Lending was launched in 2016. It allows users to pledge their own crypto assets to obtain credit in the Finnish currencies. As soon as the user extinguishes his credit debt, the crypto assets are returned to the account. Borrowers pay interest rates in accordance with an agreement concluded with the lender. And creditors, in turn, receive income from interest rates, a convenient platform infrastructure and a high level of security. To date, the capitalization of the Salt Landing platform is $ 154 million, and the Salt token rate is $ 2.95.
The platform is built on the basis of Ethereum block system with ERC20 Salt tokens, for each loan smart contracts are used, which guarantees automatic payments to all parties to the transaction. To use the services of the Salt Lending platform, all users need to register and buy Salt tokens. When applying for a loan, the user comes under the control of the KYC ("Know Your Customer") and AML ("anti-money laundering") systems.
Lenders publish their terms on which they are ready to lend. And borrowers choose the most convenient option for them. Lenders provide money that will be blocked until the borrower provides its crypto-assets in the form of collateral. Monthly borrowers pay commission fees until the loan is repaid. Once the lender receives his money back, the smart contract releases the crypto assets that are returned to the borrower.
On the platform, there are three levels of membership, each of which has its own conditions. The more Salt tokens a user has, the more flexible the conditions will be.
ETHLend is a decentralized p2p application (DApp) based on Ethereum for lenders and borrowers. The application works through smart contracts and internal tokens LEND and allows users to decide on what terms the transaction will be made.
To obtain a loan, borrowers must provide ERC-20-compatible tokens or domains of the Ethereum Name Service (ENS), access to which will be regulated through smart contracts. At the moment, only borrowers can leave requests for a loan, indicating the conditions necessary to conclude a deal. Next, lenders choose favorable conditions for themselves. If the borrower repays its credit debt, the creditor receives the funds back. If the borrower can not repay the debt, the lender receives the collateral specified in the smart contract.
ETHLend uses the Bloom protocol, which broadcasts the borrower's credit rating on the block. The main purpose of the protocol is to increase the credibility of kriptonka players and build a credit history for each borrower on the blockbuster. Thanks to Bloom, lenders can assess risks on their own, and borrowers - use it as a tool to maintain a loan agreement.
Bitbond is a German mutual loan fund on a blockbuster. Bitbond was launched in July 2013 as an intermediary platform between lenders and borrowers. Unlike other platforms, Bitbond works on the Bitcoin blockbuster, and therefore all transactions are concluded in the crypto currency of this network.
On the Bitbond platform, borrowers, in whose role representatives of small business, for example, online sellers act, can get a loan of up to $ 10,000. The creditworthiness of borrowers is assessed using their transaction history on e-commerce services such as eBay, Amazon or Debitoor. The Bitbond team assesses the borrower's ability to repay the loan, considering the borrower's income and customer feedback. Credits to platform users are provided by individual and institutional investors who receive profit at the expense of interest rates paid by the borrower.
In 2016, the Bitbond project was granted the license of the German financial regulator (BaFin) and is today one of the few completely independent of the bank and regulated financial services providers in the detachment.
A group of banks led by the Swiss Credit Suisse this year plans to launch a block-based platform for syndicated lending, a form of credit that is provided to the borrower by at least two creditors participating in a single loan agreement. The group of banks includes such well-known financial organizations as Barclays, BBVA, Danske Bank, Royal Bank of Scotland, Societe Generale, State Street Corporation, U.S. Bank, Wells Fargo and Eaton Vance Management. A technology audit will be undertaken by an international consortium of financial companies in the development of the use of blocking technology in the financial system R3.
At this stage the project is under development, however, it is already known that the project will involve a pool of lenders that will provide capital for individual borrowers. To do this, the platform will be launched, which is being developed by Synaps. On the block-platform, smart contracts will be launched that will speed up the process of concluding transactions and make the platform attractive for future creditors.
The project participants hope that the block will not only reduce the time it takes to enter into syndicated loan deals, but also significantly reduce costs for all parties, providing new lending opportunities for the market.
Another financial crypto-startup is Jibrel Network. The first of its kind platform allows users to store, send, receive and exchange tokenised financial assets from the real world - currencies, stocks, bonds, ownership and so on. Despite the fact that the final version of the Jibrel Network is still in development, the project has already collected more than $ 30 million during the ICO, which ended in January this year. The future platform has received funding from both private investors and funds such as TaaS Fund, Tech Squared and Aurora Partners.
The Jibrel Network project was designed to provide cryptology with the ability to use regulated, safe and insured assets. The platform will be launched on the basis of the Ethereum block system, and its users will receive the CryDRs (CryptoDepository Receipts) smart tokens ERC20 for each digitized unit. Thus, thanks to the CryDRs tokens, users will be able to tone assets from the real world and perform transactions with them in the Jibrel blockbuster. The platform will work in accordance with AML / KYC standards.
Initially, Jibrel Network will support six fiat currencies and provide access to two market instruments, however, over time, the list of services and services will grow significantly.