A Thorough Analysis of “Bitbond- The Bitcoin Lending Platform”
Lending and borrowing of funds for personal or professional use have been existent in the society for the longest unknown time. Where earlier it was characterized by the procurement of loans from money lenders, today we have banks and regulated lending organizations for the purpose. These institutional bodies charge hefty interest rates on the borrowed amount and often follow a cumbersome mechanism during the execution of the deal.
Blockchain technology is the latest pedagogy that is simplifying the process of borrowing and lending in modern times. Built on a distributed ledger, blockchain promotes the concept of decentralization and seamless operations. As it supports decentralization, there exists no need for a third party to validate or verify a transaction. This makes blockchain technology a thriving solution in the field of lending and borrowing of funds. In simple words, blockchain lending refers to the process by which a private lender or business lends out funds to other private individuals or firms on pre-defined terms. The system is based on the peer-to-peer model and ensures a quick settlement of transactions in a secured and transparent blockchain network.
The willing lenders are connected to the lenders without the interference of middlemen or a third-party institution. This allows the manifestation of unbiased lending. Another lucrative feature of such financing is that the borrowers get the chance to choose from an array of available options as the blockchain network allows access to places around the world without any barriers. This helps the lenders to attain loans at reasonable rates. Also, as the contracts are based on smart contracts, both parties are able to verify the transactions, cross-check the authenticity of the counterparties, and keep track of the account operations on a regular basis.
About Bitbond
One of the prominent names in the blockchain-based lending industry is Bitbond. The platform is a globally reputed P2P Bitcoin lending channel that helps small business enterprises to avail loans at affordable rates while offering lenders interest on their lent holdings. The Bitbond team comprises of a magnificent 33,000 customers base accounting for a whopping 0.54 Million $ worth loan volume. The secure and efficient facilities provided by the solution have made Bitbond become the third biggest firm in the bitcoin lending industry. Bitbond offered Germany’s first Security Token Offering or STO and received a license from BaFin, the German financial watchdog in 2016.
The World-Class Features of Bitbond Platform
The creators of Bitbond curated the platform as the world’s first global lending solution for providing reasonable business loans to online and offline business entities. It facilitates cross-border lending through blockchain technology for payments along with machine learning or cash flow-based credit underwriting. At present, the firm offers loan services to restaurants, consultancies, freelancers, e-commerce businesses, etc.
For the cross-border payments, Bitbond transfers payments through bitcoin and the Stellar blockchain. The firm has integrated with TEMPO France to facilitate the execution of payments through bank accounts in a convenient manner. Small business projects often fail to pool in the necessary funds required for the development and innovation of their core business. Bitbond strives to solve this issue by bridging the gap between the lenders and the borrowers by providing an interface that helps to acquire quick and reasonable loans with minimum paper requirements and compliance processes.
To acquire the loan, borrowers need to fulfill the online application requirements which take a maximum time of 15 minutes. The Bitbond platform provides a personalized rating to the borrowers within 24 hours of online application. The payment and repayment of a loan are done on the blockchain network integrated with the local bank accounts of the participating parties.
Bitbond Accomplishments in 2019
In September 2019, Bitbond announced the successful closure of its highly anticipated STO while pooling in funds more than €2.1 million worth. The funding round saw the participation of nearly 87 countries around the world, excluding the USA and Canada. The debt-based security tokens issued by Bitbond named BB1 had an international securities identification number. The token offered the investors a return of 4% annually with a targeted return of 8%. The month of October witnessed the issuance of the first on-chain coupon payment of Bitbond.
With an aim to proliferate into new marketspaces, Bitbond entered into negotiations with the government authorities of Bermuda to issue a digital bond in the country. The news was broadcasted in September 2019, thereby marking the kickstart of the success streak of Bitbond. Later in December 2019, Bitbond collaborated with a property investment firm, KlickOwn, to provide real estate-pegged bonds on the Stellar blockchain network. The project is likely to set off in January 2020 and will be open for retail investors with a minimum investment of 10 Euros.
Conclusion
Blockchain-based lending is a new phenomenon and the industry is still in its nascent stage of development. The unprecedented excellence of blockchain technology has paved the way for its proliferation into various domains, including the lending arena. Platforms like Bitbond have entrusted the customers to delve into blockchain-based lending solutions to enjoy the highest levels of security, reliability clubbed with reasonable interest.
