Cryptos, Blockchain And The Next AltFi Wave - Plus Loan Latest
There's a lot of nonsense and hype surrounding cryptocurrencies and its underlying blockchain technology. But there's also a sensible way ahead – probably involving asset-linked digital tokens using blockchain. These securities (they will be regulated as such) are the coming fashionable wave in alternative finance. We believe they may prove more durable than many cryptocurrencies.
Our friends at Crowdfundinsider report the latest moves in this area.
Blockchain Operators & Users – The purpose of the survey is to collect information on the level of adoption of blockchain and distributed ledger technology (DLT) in an enterprise setting
Central Bank & Public Sector Blockchain – The purpose of this survey is to help officials understand how blockchain and distributed ledger technology (DLT) systems are being developed and used in the public sector across all five continents.
Blockchain Vendors Survey -The purpose of the survey is to collect information about permissioned platforms built on blockchain and distributed ledger technology (DLT), as well as software and technology vendors that is useful to a wide group of stakeholders. With this research we are aiming to collect useful benchmarking data while not exposing any trade secrets or security practices that could assist a competitor or adversary.
Our latest loan offering is A-rated and property-backed with a fixed-rate yield of 8 per cent, and a term of five years. It's proving popular, and is currently 63 per cent filled. Our lenders have achieved average returns of over 8 per cent on the more than £12 million facilitated by Money&Co. in the past four years. All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (ISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income.
A Process Guide To Innovative Finance ISA Investment
Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable. So here's our guide to the process:
Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
Step 3: Buy loans in the loan market. Once you've put cash in your account it will sit there - and it won't earn interest until you've bought a piece of a loan. It's this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans - all loans on the Money&Co. site can be held in an IFISA - and your money will start earning tax-free interest.
The ISA allowance for 2018/19 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We're assuming a 7 per cent return, net of charges and free of tax here. Once you have made your initial commitment, you might then consider diversifying - buying a spread of loans. To do this, you can go into the "loans for sale" market. All loans bought in this market also qualify for IFISA tax benefits.