It is evident there is a bright future ahead for companies looking to mix lending with cryptocurrency. So far, few of these efforts have been particularly successful, but there are always exceptions. In the case of ETHLend, the company is looking to expand into the fiat currency industry. It’s a remarkable development, as we hardly ever see a cryptocurrency firm expand to fiat, rather than the other way around.
ETHLend has Major Plans
It is commendable how ETHLend has progressed as a company over the past few months. This cryptocurrency lending firm has made a name for itself, and the company is looking to further expand its presence in the months to come. Doing so will require a bit of an unorthodox strategy, although it is a business model that could prove to be quite lucrative in the long run.
To put this into perspective, we often see financial entities jump ship to cryptocurrencies. The release of Bitcoin futures contracts is a great example of this, as it shows traditional firms want to provide clients with exposure to cryptocurrency without taking too many risks. Firms taking the completely opposite approach are rather unheard of, but ETHLend is determined to make this work in the coming months and years.
As of right now, the firm is looking to obtain a license in the European region. More specifically, ETHLend wants to offer fiat lending services to 30 different European countries. If this licensing undertaking proves to be successful, the company will also attempt to obtain a similar license in the US and various Asian countries. The US expansion would take a state-by-state approach, rather than span the entire country from day one.
Considering that ETHLend positions itself as a decentralized lending application on the Ethereum network, it will be interesting to see how this licensing process unfolds. With a focus on peer-to-peer lending, there is no reason the team can’t obtain the license it is seeking. However, the project aims to make financial institutions obsolete when it comes to lending, which may prove to be a hurdle when it comes to obtaining these licenses.
There are some aspects which will work in ETHLend’s favor, though. Every loan issued on the protocol can only have two outcomes. Either it is repaid in full, or the loan isn’t repaid and the lender obtains the borrower’s collateral to cover the default. Translating this process to fiat currencies will be quite challenging, though not impossible by any means.
ETHLend’s CEO, Stani Kulechov, commented:
Our next step is to implement KYC identification during the Q2 on the decentralised application by using a third party KYC provider and complying with all the applicable data protection laws. By exchanging our know-your-customer policy, we are de facto able to broaden our services to more institutionalised borrowers and lenders in demand.
You may be interested
Cryptocurrency Exchanges Binance, Kraken May Be Operating Unlawfully in New York: AG ReportBrian Evans - Sep 19, 2018
New York State Attorney General Barbara Underwood has referred three major cryptocurrency exchanges to the state’s Department of Financial Services (NYDFS) for potential violation of New York’s virtual…
3 Things to Do Now That Tezos’ Mainnet Is LiveBrian Evans - Sep 19, 2018
Now that Tezos has officially launched its main net, users are looking for ways to capitalize on this momentum. A few interesting developments have taken place as…
New York Attorney General Report Says Crypto Exchanges are at Risk of ManipulationBrian Evans - Sep 19, 2018
A recent report by the New York Attorney General’s office states that digital currency exchanges are at risk of manipulation and conflicts of interest