More noise from the cryptocurrency peer-to-peer lending interchange.
A quick update on yet another digital currency-fueled peer-to-peer lending exchange. Pure-Central launched late last year with the goal of hooking up lenders and borrowers for loans using a number of different cryptocurrencies – including Bitcoin, Litecoin, Namecoin and Darkcoin. In the style of Funding Circle, credit scoring letters (A, B, C, and so on) are assigned to borrowers, each of whom must submit a range of documentation in order to be adjudged eligible.
The site also features a kind of peer-rating element. Investors are asked to rate all loans within which they participate – allowing further investors a greater level of insight into the credit-worthiness of individual borrowers. Unusually, lenders in search of an opportunity may also publish a loan offer with various stipulations and wait for an interested borrower to come along. The loans currently listed on the fledgling platform are yet to gain much traction. No loan is more than 15% funded at present. The terms on offer are mostly on the shorter side – ranging from 30 days to a maximum of 730. The current batch of opportunities doesn’t provide the clearest insight into the interest rates offered on the platform – but the range appears to be 2.5%-7% for now.
James Donavan, a developer at Pure-Central, commented:
"The key to Pure-Central's success is in the fact that we offer digital currency services for Bitcoin, Litecoin, Dogecoin, Namecoin, TheWLD, Peercoin, Darkcoin, and AuroraCoin—no one offers the variety that we do. ... We are confident that [the] cryptocurrency market is ready for what we have to offer.”
An increasing number of portals are surfacing to claim a corner of the cryptocurrency P2P lending space – but we’re yet to see any one outfit gather significant momentum.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.