RAD Lending: The Future of Crypto-Assets Backed Lending

According to recent studies, the current number of unique active cryptocurrency wallet users range between 2.9 million and 5.8 million. Most of these users have more than one wallet application installed on their phones and desktops. A similar trend is also visible when it comes to crypto-related businesses as well, as many of these blockchain and cryptocurrency companies cater to multiple verticals within the ecosystem, becoming what can be referred to as “Universal Cryptocurrency Companies”.

The growing user base of cryptocurrency and related products has skyrocketed, with the highest number originating from countries like New Zealand, Denmark and Belgium. The community growth is expected to follow the upward trajectory to hit 100 million users soon.

With the promising numbers and encouraging trends, there are still untapped opportunities when it comes to cryptocurrency applications for everyday financial needs. The total market cap of all cryptocurrencies combined has already exceeded $100 billion, but the roadblocks to adoptions and use have turned the digital currency into more of a tradable asset than an exchange of value.

RAD Lending platform might just be the push the market needs to fill the gap between crypto holdings and real-life fiat spending. The P2P lending platform from RAD will act as a matchmaker between loan requests and funding proposals.

The platform will provide capital to be used in funding credit products using investors looking for low-risk fixed income in fiat currencies. It will work in a way such that, the investors will post-funding offers with their terms on the platform or bid on existing loan requests from the borrowers.

Validating the Business Model

The basic logic and first step towards a solution will be to offer secured lending with collateral in crypto which will be against a fiat currency loan to create a certain amount of stability, especially with the cryptocurrency volatile market.

The platform will be taking two approaches in its implementation process. Once launched, the platform will take a business approach with the most popular blockchains — Bitcoin and Ethereum, in an effort to fine-tune its operations and help validate the business model.

Decentralization will be the second approach. RAD Lending will build a decentralized blockchain-agnostic escrow service, allowing the platform to receive securities and issue loans across a variety of blockchains.

Loans at Much Fairer Interest Rates

The RAD platform plans to be the only issuer of fiat tokens at the moment, with more issuers entering the space in future. For an investor to participate they will be required to purchase “fiat” tokens. These tokens will be traded on the platform and will track underlying fiat currency prices.

The platform will rely on market forces to determine interest rates. Also, they will consider the lenders’ offers on the platform with the desired interest rate and terms. Borrowers looking for loans or credit cards will also be able to post loan bids or accept standardized products offered on the platform.

RAD Lending platform will then make the best combination to create a loan, similar to the lender and borrower specifics, charging a fee of 1.5 percent on all loans generated on the platform.

P2P lending will provide a faster, significantly cheaper, loans at much fairer interest rates which will be accessible to everyone.

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