Why Bitcoin Is Pristine Collateral For Lending
Bitcoin’s attributes will lead to its inevitable usage as collateral for lending, mainly due to its superiority over real estate’s properties.This is an opinion editorial by Leon Wankum, one of the first financial economics students to write a thesis about Bitcoin in 2015.Today, the most common form of collateral used by a borrower to secure repayment of a loan to a lender is real estate. This practice is common among mortgages, personal loans and business loans. Banks lend to people and institutions that own real estate. Other common forms of collateral include business inventory, cash,....
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Bitcoin as an asset is a perfect form of collateral and will likely be used to provide financial backing for mortgages and other forms of debt.
A conversation exploring topics from Aaron Segal's "The Revenge Of The Nodes", such as decentralization, declining fiat credit quality, and Bitcoin as pristine collateral.
State Street Corp., a global financial holding company, has completed a 7-month blockchain test to streamline the securities lending process which it is considering deploying in 2017, Hu Liang, senior managing director of the Emerging Technologies Center at State Street, told Reuters. State Street is among several financial institutions to test blockchain technology and to consider deploying it in the near term. Blockchain Improves Lending. The blockchain system State Street has tested would transform the collateral posted by an investor to borrow securities from State Street’s clients....
The financial services company is only considering non-volatile assets as collateral in its DeFi lending solution that's under development. In a presentation made during the Singapore Fintech Festival, Annerie Vreugdenhil, chief innovation officer of ING, announced the firm is working on a trial of its decentralized finance, or DeFi, peer-to-peer lending protocol with the Netherlands Authority for the Financial Markets. Vreugdenhil said the following in regards to the development, as reported by Ledger Insights:We are looking into peer-to-peer lending in a DeFi kind of setup. But then not....
Harmony's Ecosystem Fund financed Hashstack's solution to improving DeFi lending. The DeFi lending and borrowing market has grown significantly in volume as new lending protocols continue to attract capital and NFT-backed loans become more popular. According to Dune Analytics, the top three platforms in terms of market capitalization are Aave (AAVE), Maker (MKR) and Compound (COMP). These platforms, however, still are facing issues when it comes to collateral requirements and volatile digital assets.Hashstack Finance is a DeFi platform whose crypto-native lending protocol, called Open, is....