A blockchain platform that enables regulated UK lenders to provide loans secured against crypto assets – anywhere in the world!
Lendo’s mission is to connect conventional banking services and cryptocurrency through the Lendo card and smart wallet system. Lendo makes several types of blockchain assets, such as crypto currencies and tokens, spendable in real time when using the Lendo credit card.
The Lendo card will connect to its smart wallet that allows storage of Lendo tokens, BitCoin, Litecoin and Ethereum. Other currencies and tokens will be added in the future.
To open up new markets for UK lenders and make it safer and speedier to provide loans for cars, home refurbishments, personal loans and credit card debt using blockchain technology.
To provide loan companies with the technology and expertise needed to capitalise on the many advantages of lending against cryptocurrency as secure collateral.
To enable lenders to attract a new swathe of borrowers who have crypto assets and grow their business into the digital future.
The number of people buying cryptocurrencies as an investment is skyrocketing. Bitcoin, Ethereum and the other major digital currencies have shown some explosive rises in value, which is why crypto investors want to hold on to these assets. Selling them is the last thing they want to do.
But, if they want a loan, they are unable to use their cryptocurrency assets as collateral. Lendo changes that and makes it possible for fully FCA regulated conventional lenders to make a cash loan against crypto assets.
What is more, Lendo opens up the whole world to UK loan companies. With conventional lending, a loan company can’t make loans outside the legal jurisdiction it operates in, because it is impossible to control defaults on the loan. Lendo’s blockchain technology changes all that.
Loans made using the Lendo platform are secured with optional smart contracts that ensure access to the crypto collateral kept in escrow. This means an end to headaches over borrowers who default on repayments. Furthermore a lender can provide loans outside the UK market because the collateral is digital and not in any particular jurisdiction or geographic location.
It’s a bold, new lending platform that will grow each user’s market share.
- Loan companies using Lendo will have ‘first mover advantage’ and be able to gain extra market share by attracting new borrowers with crypto assets.
- Lenders will be able to accept Bitcoin, Ethereum and Litecoin as collateral as well as Lendo tokens.
- Lenders can provide fiat loans at up to 60% LTV against the crypto collateral.
- Lending decisions will made easier as they are based on quickly realisable asset value rather than conventional credit scoring.
- Lenders can repossess crypto assets quickly and easily in the event of loan default through automated smart contract systems, which pass possession from borrower to lender (via the Lendo escrow/exchange system) without needing time consuming and expensive conventional legal processes.
- Lenders can now have a global reach as the crypto assets are held in Lendo’s international escrow/exchange system – meaning that the borrowers country of residence is no longer of any significance.
*Crypto currency will be accepted as collateral subject to the normal lending terms and conditions and KYC and AML compliance procedures.
Lendo provides a means for borrowers to raise a cash loan against the cryptocurrency assets accepted by Lendo and its partners. These assets are stored as collateral in the Lendo Vault for the period of the loan.
How the Lendo Vault works
- The cryptocurrency collateral is deposited in the secure Lendo Vault – the vault is built on our proprietary, ultra high security software system.
- Borrowers will always be able to see that their funds are safely stored there when they log in to the Lendo website.
- The crypto assets are placed in ‘cold storage’, which means they are not stored online. This is an additional layer of security that removes any risk of web based theft or fraud.
- Borrowers will not be able to access these assets until repayment of the loan is successfully completed.
- Borrowers can also be assured that while their Bitcoin, Ethereum or ETL tokens are in storage, they appreciate just as they might if they were stored in a wallet on one of the crypto exchanges.
- The borrower’s crypto assets will be returned to them once the loan is paid via a unique multi-signatory smart contract.
- In cases where the borrower defaults on the loan, the same multi-signatory smart contract ensures that only the listed signatories can access the funds for repayment. This list includes the borrower.
It’s very simple really. When you want a personal loan, whether it is to pay bills, buy a car, have some work done on your property or go on holiday, a Lendo loan application will ensure that you get the cash you need in the shortest time possible.
Applying for a Lendo loan is simple
- Register with Lendo and supply the required KYC documents
- Provide evidence of your Crypto assets – the licensed broker will be able to verify this via the blockchain public ledger
- Sign the smart contract which is stored on Lendo’s Ethereum blockchain platform and transfer the required amount of your crypto assets into the Lendo Vault
- Now the loan in fiat currency will be transferred to your bank or other payment system of your choice
No credit checks required! Use your crypto as collateral
Lendo securely opens up a new world of borrowers for licensed lenders
There is a huge gap in the loans market because conventional lenders don’t have the expertise to collateralise new currencies. Lendo fills the gap and opens up new markets to regulated loan companies.
In the past, the difficulty and costs of liquidating, transferring, and storing assets has required lenders to focus on the creditworthiness of the borrower as well as the value of their
The distributed blockchain ledgers represent a paradigm shift in the storage and transfer of assets that make crypto assets the perfect form of collateral: Lendo is pioneering a revolutionary leap in lending in which the value of a borrower’s crypto assets are fully recognised and their credit history is no longer relevant.
Lendo’s proprietary blockchain platform provides the software protocols and crypto expertise necessary for UK licensed loan brokers to accept crypto currency as collateral.
(Subject to the normal lending Terms & Conditions and KYC and AML compliance procedures.)
The Lendo Network
Initially, the Lendo lending network will consist of UK FCA licensed brokers.
Lenders will provide fiat loans using cryptocurrency as collateral at up to 60% LTV and these loans can be used for any purpose.
The lenders will accept Bitcoin, Ethereum and Litecoin as well as the Lendo Token as collateral initially, but this selection of currencies may expand in the future.
Lendo has already secured a contractual agreement with major UK lenders who are piloting the project.
Joining the Lendo network gives you first mover advantages and offers you the opportunity to expand your customer base, not just to UK residents with crypto assets, but to holders of crypto assets anywhere in the world.
For Licensed Lenders
Lendo provides FCA licensed lenders with the security of its proprietary, ultra high security Lendo Vault where the assets provided as collateral are stored by Lendo for the period of the loan – similar to a conventional escrow system.
The crypto assets are placed in ‘cold storage’, which means they are not stored online. This is an additional layer of security that removes any risk of web based theft or fraud.
Borrowers will not be able to access these assets until repayment of the loan is successfully completed. The borrower’s crypto assets will be returned to them once the loan is paid via a unique multi-signatory smart contract.
What happens if the borrower defaults on the loan?
In cases where the borrower defaults on the loan, the multi-signatory contract ensures that only the listed signatories can access the funds for repayment. This list includes the borrower and this signatory can only be over-ridden when a clearly defined default notice period has been exceeded.
Why become a Lendo lender?
As a member of the Lendo network of UK FCA regulated licensed brokers, you will have the means to provide personal loans against crypto assets as collateral – it’s a fast and easy process to execute.
The UK loans market is huge and has even more potential to grow. In 2016, personal loans were £198 billion and car loans alone amounted to £31.6 billion. Add on mortgages at £1.3 trillion and it is evident that even a mere 0.1% share of the UK consumer credit market would bring revenues of close to 20 million per year – based on an average APR of just 10% on funds lent to the market.
- First mover advantage
Despite the size of the market, the UK lending industry has been slow to adopt blockchain technology and has yet to recognise crypto currency as an asset that can be used as loan collateral.
- A speedy loan process
Lendo speeds up the conventional lending process by using optional ‘end-to-end’ smart contracts from the point of loan application all the way through to closing the loan book or executing repossession remedies in the case of default by the borrower.
- FCA regulated lenders
It is important that both borrowers and lenders recognise that this new form of lending is secure, transparent and credible, which is why the Lendo network will only consist of FCA approved loan companies.
- Lendo will support you
Lendo will supply training in the blockchain technology software for making loans and our expertise will add multiple value to your business.
- Loan decisions are easier
You’ll be able to make loan decisions faster because you’ll be basing them on a quickly realisable asset value rather than conventional credit scoring.
- Lenders make additional profits
Lenders will make profits on the upside when the crypto assets held as collateral rise in value during the term of the loan.
- Lenders are protected from defaults
In conventional lending repossessing assets in the case of a default on the loan can be a time consuming and expensive legal process. With crypto assets as collateral, lenders can quickly repossess the monies owed through the automated smart contract system. No more lengthy legal process!
- Increase your market share
Lendo gives you global reach, because the crypto collateral is held in the secure Lendo Vault, meaning that the borrower’s country of residence no longer matters. You can lend with confidence to any country and know that you have full control.
Contact us here to find out more about becoming a Lendo network member.
Lendo’s Other Products
In addition to loans, Lendo offers the following products:
- Global exchange
- Credit cards
- Wallet and e-wallet system
- Lendo token ecosystem
- Merchant system
Lendo currency exchange
This digital asset exchange offers maximum security, ease of use and advanced trading features for more advanced users. It is a totally self-enclosed blockchain network, with a 100% emphasis on security. The vast majority of customer deposits are stored offline in air-gapped cold storage. The platform only keeps enough online to facilitate active trading, which greatly minimises risk and exposure. The trading system is the core of Lendo’s system and is used by the card system, the crypto e-wallet system, the merchant system as well as the Lendo Vault.
Crypto digital wallet
The digital wallet is securely connected to several currencies and the Lendo token as well as the credit card system. The digital wallet will be made with state of the art cryptography for maximum security. The wallet will be available as a web solution in the system as well as through apps for iOS and Android. Once a person registers as a user and completes the KYC process in the system, the wallet will be instantly accessible. The digital wallet system will also include fiat currency such as EUR, GBP and others.
Lendo’s mission is to connect conventional banking services and cryptocurrency through the Lendo card and smart wallet system. Lendo makes several types of blockchain assets, such as crypto currencies and tokens, spendable in real time when using the LENDO Credit Card. The Lendo Card will connect to its smart wallet that allows storage of Lendo tokens, BitCoin, Litecoin and Ethereum. Other currencies and tokens will be added in the future.
Crypto currency is a faster and cheaper means of monetary exchange for merchants providing any service or goods. Whether online, or in a physical location, using the Lendo merchant system has significant benefits compared to credit card services and other methods of payment.
An additional benefit of using the Lendo Merchant system is that the fees are lower than traditional payment mechanisms, and payments are settled instantly. There is no possibility of charge back as token and crypto transactions are final and confirmed on the blockchain, which gives merchants the final say on returns and fraudulent activity.
Merchants will be able to choose to convert the crypto currency to fiat currency instantly, or may choose to keep all or part of the payment as a crypto investment.