Lendingblock, the securities lending platform for digital assets, today announces the Gibraltar Financial Services Commission (GFSC) has made an in-principle decision to grant the firm authorisation as a Distributed Ledger Technology (DLT) provider.
The in-principle authorisation comes simultaneously with Lendingblock’s successful completion of its platform testing period conducted with over 30 institutions worldwide. This puts the firm well on track to launch the world’s first institutional digital assets lending exchange as a fully regulated DLT provider early in the new year.
Steve Swain, CEO and co-founder of Lendingblock commented: “As a true believer in the importance of getting our industry into regulatory shape, seeking authorisation from a leading regulator was always a priority for us. The GFSC has developed one of the most advanced DLT regulatory frameworks in the world and this in-principle decision is a tremendous achievement.”
Following this in-principle decision and the successful testing period, the Lendingblock platform is open for institutional onboarding in preparation for launch. Market participants are now able to sign up for access and will be able to commence borrowing and lending BTC, ETC, BCH and LTC across various maturities from early next year.
“Securities lending is an important aspect of most traditional market participants’ return generating strategy and we see it as a particularly relevant to the crypto economy. Our technology and collaborative work with regulators and partners has enabled us to create the market and financial infrastructure needed to meet the demand for trading digital assets on an institutional level,” added Steve Swain.
Lendingblock continues to collaborate closely with the GFSC as it works towards being granted the full DLT licence. The firm is also in discussion with several other regulators globally to ensure that the exchange meets its strategic aim to operate on a duly licenced basis for all territories in which it operates.
Lendingblock is an open exchange for borrowing and lending cryptocurrencies and digital assets. It allows borrowers and lenders to enter into fully collateralised crypto vs crypto lending agreements. Lenders can earn incremental interest income on their long-term investment in digital assets, while borrowers can use their digital assets as collateral to enable borrowing to support shorter term trading, hedging and working capital needs. Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets, a market that has $2 trillion of assets on loan and generated $4 billion of revenue in 2017. For more information visit our website or follow us on Twitter and LinkedIn.