The cryptocurrency industry has been on a remarkable journey and numerous profit-earning models have been devised. Whether it is cryptocurrency exchanges, crypto wallets, P2P crypto lending platforms or MLM crypto platforms, all are securing a massive place in the market. With a downtrend in the traditional financial instruments, the cryptocurrency market continues to grow stronger and deeper. Crypto users were looking for alternatives to acquire loan could do that on a P2P crypto lending platform.
P2P (peer-to-peer) cryptocurrency lending platforms provide an opportunity to bring together borrowers and lenders to a common platform and enable a business agreement between them. Benefits like lower interest rate, streamlined process, no credit check and transparency in the system resulted in the immense popularity of lending platforms.
In this article, we have shortlisted 5 major ventures that show that P2P crypto lending platforms are gaining global traction.
Singapore based Bezant Foundation Ltd., provides the world with the first BaaS (Blockchain as a Service) model. Bezant sings out that they are on a mission to solve the problem of unbanking with their crypto-based professionals from Bithumb, Kakao, Nexon, and more. They have also been regarded as the “Fastest ICO in Asia” that ended up in less than an hour.
In the financial year 2019-20, the company partnered with Jehmi Thailand to launch the most productive P2P crypto lending platform in Bangkok, Thailand. This platform has been named Transwiz and provides an alternative mechanism to acquire funds to almost 450 million unbanked citizens of the Southeast Asian region. It runs on Bezantium blockchain and provides a maximum transaction speed of 1000 TPS. With full transparency and privacy of information, it is surely a game-changer for not just the crypto industry but the overall economy.
The major popularity of the P2P crypto lending platform can be perceived when a crypto lending and borrowing platform named Cred associated with prominent basketball player Spencer Dinwiddie, who is also an entrepreneur by nature. This platform enables users to earn interest in crypto assets and stablecoin.
Dinwiddie commented, “This partnership comes at a critical time, where I can educate my fans on the power of cryptocurrencies and blockchain while they earn interest on their digital assets.” At the time of economic slowdown and disruption at a massive level, it is prominent to realize the potential of blockchain. Even a dedicated page was launched in March 2020 for Dinwiddie fans, so that they can efficiently make use of the Cred platform. This platform very well connects retail borrowers and money managers at a common marketplace.
United Kingdom-based firm Blockchain.com has gained major popularity in crypto wallet service and is now coming up in the cryptocurrency lending platform for retail investors. Though they have already launched crypto lending service for institutional investors, their venture into the retail industry speaks of their success in the first phase. This new service is going to roll out for all the crypto users present in over 180 countries.
Initially, their lending platform, named Borrow supports Paxos Standard stablecoin (PAX) against bitcoin but they are rigorously working to expand into other assets as well. The CEO of Blockchain.com is of the view that both institutional and retail investors have the same financial goal – to maximize their wealth by effectively managing the risks. It can be very well seen from the market trends that since the launch in August 2019, the firm acquired more than $120 million by November itself.
Amid numerous popular crypto lending platforms in the market, another major crypto company entered into the lending market which is BitGo. After several months of private beta testing, BitGo is on the verge of a launching crypto lending platform for institutional traders.
They emphasized on launching a lending platform which is similar to the traditional financial market and developed deep roots to solve the economic complications. Their goal is not to focus on high-volume but to build relations with the clients in a sustainable manner.
BitGo lending platform has been developed by professionals of Wall Street by especially focusing on institutional clients. Till now, they do not aim to scale their business to include non-institutional traders in the model. All the loans are backed by collateralization at the rate of 100% or above depending upon the market of that coin or token.
The company Celsius Network nearly doubled its interest payments in the last three months. Going by the records of February 2020, Celsius paid $11 million worth of bitcoin, ether and other assets in terms of interest income as compared to $5 million in November 2019; thus depicting a significant rise of 120%.
Also, the volume of customer deposits rose enormously from $450 million to $730 million, representing a rise of 62%. The total count for users has also grown from 50,000 to 75,000 in just 3 months.
We can very well conclude that the P2P crypto lending exchange is disrupting the traditional lending marketplace and gaining significant traction across the globe.
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