Fully collateralized crypto-to-crypto lending platform Lendingblock has received a distributed ledger technology (DLT) provider license from Gibraltar Financial Services Commission (GFSC), reports Crowdfund Insider on Aug. 15. The accreditation brings the institution-focused platform one step closer to launch.
The GFSC awarded an in-principle DLT provider license in late 2018.
New capital lending model for digital assets
Providing collateralized lending and borrowing reportedly allows Lendingblock to support short-term trading, hedging and working capital needs. This mirrors traditional financial markets, which the company aims to reinvent with a better model to service the digital asset lending market.
To this end, it recently created the first Global Digital Assets Lending Agreement, hoping to establish a new benchmark and crypto industry standard.
Actively seeking regulatory approval
Gaining regulatory approval was an essential step for the company, involving a detailed and extensive process in collaboration with the GFSC. Lendingblock CEO Steve Swain explained the company’s regulatory philosophy:
“We always put the needs of its institutional clients front and centre, so it was important for us to take the proactive step in becoming a regulated entity.”
Lendingblock continues to work with other global regulators to meet regulatory requirements in all jurisdictions in which it operates.
Gibraltar’s regulatory environment
Gibraltar has been making strides to encourage crypto and blockchain businesses to its shores, and a clear regulatory structure is part of that. Minister of Commerce, Albert Isola, said of the DLT provider license:
“It is 18 months since the DLT regulatory framework came into effect and we have seen a growing number of excellent companies and startups come to Gibraltar and work within this regulated framework.”
Earlier this month, Gibraltar awarded its first DLT license to a local cryptocurrency exchange.