A strategic partnership has been formed in between Brickblock and ETHLend for exploring the plethora of possibilities pertaining to Blockchain technology based lending. Tokenisation of assets meant for simplifying the lending process and bringing about secure real world assets as collateral into the lending procedure will be the primary focus of this new-born collaboration.
ETHLend is a peer-to-peer lending application running on Ethereum blockchain network with a decentralized architecture. It provides a global lending platform connecting borrowers and lenders across the global periphery. It also makes use of the ERC-20 compatible digital tokens in the form of a collateral for offering secured loans.
This application is perfect for token holders wishing to take part in a free lending market and having need for liquidity. Here the borrowers can pledge digital tokens for receiving Ether rather than the traditional selling and closing the token position. ETHLend will come up with a token lending feature which will help users earn enormous profit by relying on the short selling market. The Brickblock trading platform on the other hand connects cryptocurrencies and real-world assets with the core goal of revolutionizing asset trading. Built on Ethereum blockchain architecture, the Brickblock allows crypto holders to invest in exchange-traded funds (ETFs) and real estates without requiring them to convert their digital holdings into fiat form. The platform will also allow direct investment in both passive and active cryptocurrencies.
The company is all set to create history in December 2017 by bringing forth the first ever tokenized real estate building powered by blockchain. This will be ensured by issuing Proof of Asset (PoA) tokens which shall ensure the legal claim of investors over their underlying assets. The ETHLend platform users will be provided with a new form of collateral thanks to this booming partnership which will increase the scope of the tokenized assets of Brickblock.
Collaterals are used to secure loans however cryptocurrencies have been subject to much volatility in the past which is making general consumers wary about its use as a collateral. Keeping such concerns in mind, the crypto companies have come up with additional measures which shall be implemented while using crypto assets in collateral form. Three disruptive objectives shall be achieved by tokenizing of real-world assets like that of real estate:
- Providing people with an opportunity to collateralize their property using Brickblock and then securing their loan with the same.
- A strong collateral is expected to maintain its value over a short to medium time span.
- New investment opportunities are expected to flood the downside market enabling short selling of tokenized real assets.
In this way people shall not have to sell off their assets for getting the liquidity boost and will be benefitted from the simplicity and fast transactions offered by ETHLend on its platform. Simultaneously, lenders can also be rest assured of the stability of their collateral which gets the backing of real world assets courtesy Brickblock. Even if the lender receives the collateral on the defaulting loan, it can be sold for a competitive price on the Brickblock platform. Price feeds extracted from the marketplace is all set to be incorporated for monitoring the collateral value. Great things are expected out of this valuable partnership which is sure to delight customers with its incredible benefits.
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Source : Kryptomoney