EQONEX Group has launched EQONEX Lending, a crypto lending platform that allows institutional lenders and borrowers to interact directly via a lending exchange.
The platform enables exchange participants to view market rates being offered through an open order book which establishes market-competitive terms for collateralised transactions.
In addition to exchange-based lending, EQONEX will also offer an over-the-counter lending service, with prevailing rates visible on the platform.
EQONEX Lending 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, says EQONEX.
The risks associated with re-hypothecation are also eliminated as collateral assets are held in fully segregated storage in its Financial Conduct Authority-registered custodian, the group adds.
The EQONEX Lending platform integrates with all other EQONEX programmes including its digital custodian Digivault, which provides fully segregated custody for loan collateral from the lending platform.
EQONEX Lending will also be integrated into the crypto exchange EQONEX to provide borrowing and lending services to both retail and institutional investors.
The launch of the EQONEX Lending platform follows a licensing agreement with Lendingblock, a lending platform for cryptocurrencies and digital assets, under which EQONEX has integrated Lendingblock's lending exchange technology.
EQONEX Lending has also originated and completed its first crypto loan to provide a Bitcoin loan backed by USD Coin collateral.
Commenting on the launch of the new lending platform, Charlie Beach, head of EQONEX Lending, says: "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."
Richard Byworth, CEO at Diginex, comments: "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. 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."
