The financial value of the cryptocurrency market is estimated at roughly $400 billion, most of which remains untapped because it cannot be used as collateral for loans and other financial instruments.Being able to use cryptocurrencies as collateral for loans would help pave the way for their mass adoptionIn 2018, the financial value of the cryptocurrency market was estimated at roughly $400 billion. Most of this value remains untapped because it is not integrated into the mainstream financial system and cannot be used as collateral for loans and other financial instruments.
Considering the amount of under-leveraged value in the cryptospace, it is no wonder that the financial industry has started looking at digital assets as a new source of collateral. Will digital asset lending become a new norm?
If so, how are fin-tech companies going to secure digital asset collateral in a viable marketplace? This article will explore how one new startup, the Depository Network, intends to answer both questions.The easiest way to describe the Depository Network is that it combines traditional lending and blockchain technology.
A blockchain is a decentralized network of computers otherwise known as nodes which collectively process, maintain and distribute a digital record of activity. Blockchains operate on a computer protocol that uses cryptography to replace the function third party intermediaries would otherwise play in verifying transactions.
DEPO is a blockchain-based depository service for banks and other money-lending institutions (sub-prime lenders, consumer finance companies, crypto lenders and P2P lending platforms) world-wide to make it possible for them to accept digital assets as loan collateral.What Needs does DEPO Meet?The development of the internet has led to the creation of digital assets. A digital asset is anything that exists in a binary format and includes usage rights. Read more from hackernoon.com…
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