Amongst backdrop of increased crypto lending activity, the platform provides institutional investors access to a transparent and centralized global lending marketplace
August 29, 2019 – Lendingblock, the regulated, open exchange for institutional borrowing and lending of digital assets, today announces the launch of its institutional lending platform on September 3, 2019. The lending product, which is a reinvented version of securities lending from traditional capital markets, is the first exchange fully dedicated to pure crypto lending and aims to support the needs of the broader cryptocurrency market by providing a secure and liquid venue for lending and borrowing needs of institutional market participants.
Upon launch, Lendingblock platform users will be able to borrow and lend BTC, ETH, PAX and USDT on a fully collateralized basis, for loan terms of 1, 7, 14 and 30 days, with a minimum trade size of $100,000 equivalent of a specified digital asset. Rates are set by the market supply and demand, providing a transparent view of prevailing market rates.
Borrow and lend orders will be matched automatically, and Lendingblock acts as settlement agent in the transaction. Clients do not need to hold assets on Lendingblock’s exchange in advance of placing orders. Lendingblock manages the entire loan lifecycle, actively managing the collateral through the term of the loan to ensure maintenance of sufficient collateral to fully secure the loan. The platform charges a fee for the arrangement of the loan and the management of the collateral.
Clients include a mix of hedge funds, market makers, trading houses, OTC providers, crypto lending firms, and exchanges, and each have a need to either generate interest on an asset they are holding or would like to borrow in order to facilitate a specific strategy such as for shorting, arbitrage or working capital purposes. Lendingblock’s market depth analysis charts, order book tools and risk-free yield curves provide clients with access to market data and price transparency across the global lending market.
Steve Swain, CEO, Lendingblock, said “We see the Lendingblock exchange as a key piece of market infrastructure that will provide efficiencies and support healthy markets in the crypto economy. We look forward to bringing the first institutional lending exchange to market and believe it will play an essential role in facilitating clients’ trading strategies and also in helping the crypto market infrastructure to mature.”
Darius Sit, Managing Partner at Singapore-based crypto trading firm, QCP Capital, said, “We are excited by the opportunity to access new pools of liquidity through Lendingblock’s institution-only lending marketplace. Having access to an exchange where the lending supply and borrow demand is organized centrally and highly transparent in terms of being able to see the rates across different crypto assets and terms is something that the market most definitely should benefit from.”
The Lendingblock platform can also be accessed via an API and will soon also be available through a variety of distribution partners, such as Caspian’s order execution management platform. Lendingblock has 24-hour support over the phone and offers live chat to support clients throughout the process. Lendingblock, over the coming months, will also be expanding its capabilities to further meet client demand.