ETHLend and Brickblock have just announced a strategic partnership to explore the possibilities of lending with Blockchain technology. A primary focus will be on the tokenization of assets to simplify lending and bring secure real-world assets into the lending procedure as collateral.
ETHLend is a decentralized peer-to-peer lending application that runs on the Ethereum blockchain network. ETHLend provides a global lending market that connects lenders and borrowers from all over the world, offering secured loans with the use of ERC-20 compatible digital tokens as a collateral.
The application is ideal for token holders who are in need for liquidity and those who want to participate in a free lending market. Instead of selling and closing a token position, a borrower can easily pledge digital tokens to receive Ether. Moreover, ETHLend is introducing token lending, which enables profiting from down market by enabling short selling market.
Brickblock is a trading platform that connects real-world assets and cryptocurrencies with a mission to revolutionise asset trading. Built on the Ethereum blockchain, Brickblock allows holders of cryptocurrencies to invest in real estate and exchange-traded funds (ETFs) without requiring them to exchange their digital asset into fiat currency. The platform also enables direct investment into both active and passive coin (ie. cryptocurrency) funds. In December 2017, the company will make history by selling the first tokenized real estate building on the blockchain. This is done by issuing Proof of Asset (PoA) tokens, which ensure investors’ legal claim of the underlying asset.
The partnership offers new kinds of collateral for ETHLend`s platform users and increases the scope of Brickblock`s tokenized assets. Loans are secured by collateral in order to be safe, though crypto assets show a significant volatility that requires additional measures when used as collateral. Tokenizing real-world assets such as real estate achieves three disruptive objectives:
- A strong collateral that can be expected to keep its value for a short-medium time period.
- An opportunity for people to collateralise their property with Brickblock, and then using it to secure their loan.
- New investment opportunities for downside market by enabling short selling for tokenized real assets.
This way, people do not have to sell their assets to get liquidity and they can easily pay it back using the fast transactions and simplicity that ETHLend offers on their platform. At the same time, lenders can be assured that their collateral is stable and backed by real-world assets thanks to Brickblock. Even when the loan defaults and the lender receives the collateral, it can be easily sold on the Brickblock platform for a competitive price. For that purpose, and also to monitor the collateral value, price feeds from the marketplace will be incorporated.
Both parties look forward to a valuable partnership that creates incredible new benefits for their customers.