EQONEX Group, recently rebranded from Diginex Limited, has just announced the launch of its institutional crypto lending platform, EQONEX Lending. The Platform is licensed from Lendingblock, an institutional grade lending platform.
The new EQONEX lending platform aims to transform the institutional lending landscape for cryptocurrencies. Currently, most large institutional loans and borrows take place OTC (over-the-counter). Rates are not transparent enough, leading to inefficiencies in the market.
With the EQONEX Lending open order book approach, market participants can see the rates being offered with full transparency. EQONEX will commence its own OTC service, but with all rates visible on the platform.
An overview of the loan lifecycle is taken from the press release provided by EQONEX Group:
“EQONEX Lending will also provide an automated workflow that manages the entire loan lifecycle, eliminating settlement risk, actively managing collateral to protect the lender from default risk and substantially reducing the operational risks normally associated with manual loan processing. The increasingly prominent risks associated with re-hypothecation are also eliminated as collateral assets are held in fully segregated storage in our FCA registered custodian.”
EQONEX has completed its first loan, and has developed a pipeline of loans to institutional customers. The loans will service institutional clients in the crypto sector, such as funds, market makers, trading firms and miners etc.
With the crypto market borrowing and lending increasing more than 10x over the last year, and crypto-backed loan volumes also increasing ten-fold, from $1 billion in 2019, to $10 billion currently, EQONEX should be well placed to take advantage.
Richard Byworth, CEO at Diginex, said:
“The crypto lending market is set to be one of the fastest growing segments of the industry in the coming months and years, as institutions look to manage their capital efficiently. Lendingblock’s technology is proven to provide state of the art settlement, collateral management capabilities, and transparent pricing. EQONEX Lending will be the only platform that provides the ability to view the whole loan book, allowing clients to have the full flexibility to set their own financial terms.”
Charlie Beech, head of EQONEX Lending remarked:
“We’re very excited to have launched what we think will be a transformational product for the institutional lending market, enabling a broad range of companies to come together across a safe and transparent venue that combines proven capital markets financial concepts with blockchain technology.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
