Monday, November 27, 2017

Bitcoin as collateral? New Blockchain Fintech company to create lending network grounded on cryptocurrencies

One of the biggest questions in the cryptocurrency market has always been how could a de-centralized digital currency facilitate lending in a similar fashion to how central banks do using sovereign currencies?  Some companies like GoldMint are in the process of trying to create lending facilities using the old 'Pawn Shop' method out of their gold backed cryptocurrency, but as yet this paradigm only works for resource backed cryptos.

Now on Nov. 26 a company known as SALT Lending announced that they are ready to provide the platform to facilitate lending using unbacked cryptocurrencies like Bitcoin as their collateral.

In a world drowning in debt, consumers and institutions can borrow and lend against any collateral: Houses, stocks, gold, watches, diamonds, government bonds — the possibilities are endless. 
But there is one asset class the traditional lenders won’t touch with a ten-foot pole: cryptocurrencies and other crypto assets. And yet, because of their digital and transparent nature, these assets would be the easiest to collateralize. 
Enter SALT Lending, the first blockchain-based lending network. It aims to use blockchain technology to securely collateralize crypto assets and provide fiat money loans against them. 
But this is just the first step. Eventually SALT wants to put all asset-backed lending on its Ethereum-backed blockchain, using the technology to provide a better and cheaper service for lenders and borrowers alike. This is a daunting task, however, as many ambitious Ethereum ventures have yet to deliver on their lofty promises. – Epoch Times


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