Australian peer-to-peer business loan provider Marketlend has issued Black, a blockchain stablecoin cryptocurrency for use on its platform. The stablecoin can be used to buy tokenized debts.
With its partner Polymath, Black can be traded on Marketlend’s exchange or other security token exchanges, as reported by AFR. Worth A$1 each, this collateralized stablecoin is expected to benefit both lenders and borrowers by providing more secure and efficient transactions.
On the Marketlend platform, eligible investors can scrutinize listings of small and medium-sized enterprises (SMEs) and lend to those who are likely to deliver returns. The investors trade tokenized debts of the borrowers on the platform with Black, which is minted based on deposits of investors in their trustee bank accounts.
Marketlend CEO and founder Leo Tyndall says the stablecoin was developed to improve the system in many ways.
“The unveiling of Black is the result of many months of research and testing and we believe this will drive greater speed, efficiency and security across the Marketlend platform and its global recognition,” Tyndall said.
Black is expected to increase returns for investors while reducing costs for borrowers. It can also remove friction and offer more options for lenders who are considered investors on the Marketlend platform.
“Black can then be used to buy a ‘security token’, a digital representation of their interest in the loan, which can then be traded on Marketlend’s loan exchange, or other security token exchanges,” states AFR. “The idea is that this provides investors with an exit option, which should ultimately reduce the cost of credit.”
Tokenized debt trading by Marketlend will be tried this week and 26 investors on the platform will be given a digital wallet for the Black currency.
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