We are interested in the extra liquidity and flexibility that cryptocurrency loans can provide. If the offerings are properly regulated and asset-backed, this is definitely an option to explore.
It seems we are not alone in this line of thought. Our friends at P2P Finance News report:THE MARKET for initial coin offerings (ICO) incorporating peer-to-peer lending has remained vibrant despite wider volatility among cryptocurrencies.
Digital currencies such as Bitcoin and Ethereum suffered from price falls in January but many firms are still seeing the benefits of creating their own cryptocurrency to use for P2P lending. One provider, SOFIN, is currently looking to raise up to $1m (£720,000) to create a token that can be used as a tool to bypass high exchange rates so loans can be funded internationally.
Instead of having to pay exchange rates for converting from one currency to another, up to 20 per cent of a loan would be funded by the token which the borrower could convert into their local currency. The platform plans to increase this capability to the full loan eventually.
Our communications director is author and award-winning journalist, Martin Baker. He's just produced a short book on one of the most talked-about sub-sectors of alternative finance: Bitcoin, Cryptocurrencies and Blockchain, 2018 – Mining Truth From Fiction is published by Wet Zebra Media, and is available as an e-book for £5. For more, CLICK HERE.
Martin chairs a new Money Matters podcast discussion on cryptocurrencies – click here to listen to the 15-minute discussion. The panellists are Money&Co. CEO Nicola Horlick, Lib Dem House of Lords finance spokesman, Baroness Susan Kramer, and David Buik of investment Bank, Panmure Gordon.
We currently have one A-rated, fixed-term loan on site, with a fixed rate of 8 per cent and a term of three years; it is presently 23 per cent bid – and will close when filled. Another A-rated loan, from Seascape (five-year term, yield of 9 per cent) and several others are expected on site soon.
In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users.
All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment.We write regularly about these three key factors. Here's an earlier article on security, access and yield.
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.