{"id":308466,"date":"2021-07-26T18:52:00","date_gmt":"2021-07-26T15:52:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-crypto-can-modernize-the-world-of-lending\/"},"modified":"2021-07-26T18:52:00","modified_gmt":"2021-07-26T15:52:00","slug":"how-crypto-can-modernize-the-world-of-lending","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-crypto-can-modernize-the-world-of-lending\/","title":{"rendered":"# How crypto can modernize the world of lending"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35fd8e7f683\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35fd8e7f683\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-crypto-can-modernize-the-world-of-lending\/#It_isnt_just_lenders_who_benefit\" >It isn\u2019t just lenders who benefit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-crypto-can-modernize-the-world-of-lending\/#A_new_approach\" >A new approach?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># How crypto can modernize the world of lending <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>\n<p dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.baanx.com\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1480\" height=\"200\" alt=\"\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/e373f8e249006863b5a0aab1341cd5ce.png\"><\/a><\/p>\n<p dir=\"ltr\">Lending has been around in some form for thousands of years \u2014 dating back to ancient civilizations where farmers would borrow seeds and use crops as repayment.<\/p>\n<p dir=\"ltr\">The arrival of fiat currencies transformed the way economies were run back then. Indeed, you could argue that we\u2019re seeing such a seismic shift now as cryptocurrencies become a larger and more influential part of the world\u2019s financial ecosystem.<\/p>\n<p dir=\"ltr\">When done right, crypto lending has the potential to level the playing field \u2014 giving consumers a type of flexibility that they may otherwise have been unaccustomed to. For several years now, the rates offered by banks have been tepid to say the least. In some countries, even the most generous savings accounts will only pay less than 1% interest \u2014 even if funds are locked up for several years.<\/p>\n<p dir=\"ltr\">Given how inflation has been rising sharply recently, in part because of the money printing performed in response to the coronavirus pandemic, signing up for one of these accounts means a saver\u2019s money would actually command less spending power down the line.<\/p>\n<p dir=\"ltr\">Crypto lending offers three powerful advantages compared with the status quo. First, it is possible to find more competitive deals that ensure capital actually grows \u2014 with interest sometimes paid on a weekly or a monthly basis. Second, many platforms offer a much-needed degree of flexibility to lenders, meaning that they won\u2019t be forced to lock up their money for long periods of time and can withdraw their funds at will. And third, it can act as a powerful incentive when markets are behaving rather erratically.<\/p>\n<p dir=\"ltr\">That\u2019s before we\u2019ve even discussed the fact that crypto as collateral can be far more practical from a lender\u2019s point of view than real estate \u2014 an asset that is rather illiquid and can be rather time consuming to sell.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"It_isnt_just_lenders_who_benefit\"><\/span>It isn\u2019t just lenders who benefit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Of course, all of this sounds like a good deal for lenders \u2014 the people who have capital to spare. But it can also be beneficial for borrowers, too. In the current financial ecosystem, where a single blemish on an otherwise impeccable credit history can deny a responsible consumer access to the best interest rates, crypto platforms can offer an invaluable lifeline.<\/p>\n<p dir=\"ltr\">Banks often have an opaque list of requirements when it comes to finding the people they are willing to extend credit to. And, in a world where ever-increasing numbers of consumers are self-employed, otherwise creditworthy <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>licants can end up being excluded from the market simply because they don\u2019t have a traditional nine-to-five job \u2014 irrespective of whether they actually earn more money in their current arrangement.<\/p>\n<p dir=\"ltr\">The crypto world can help to foster inclusivity here, but there are challenges. A number of lenders in this space are offshore and unregulated \u2014 something that can make them less appealing to everyday consumers. This also restricts the number of partnerships that crypto platforms can enter into with fintech firms.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"A_new_approach\"><\/span>A new approach?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">One platform that is aiming to shake up the world of lending is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.baanx.com\/\">Baanx<\/a>, a crypto-as-a-service fintech intending to bridge the worlds of crypto and fiat. The company allows brands to offer interest-free forms of secured lending to their customers and communities, alongside high savings rates for those who stake their digital assets. This is all achieved via APIs that can be rapidly integrated into any DeFi, exchange, or wallet\u2019s app or website.<\/p>\n<p dir=\"ltr\">This form of interest free and low cost secured lending is provided to those who stake BXX, the utility coin that\u2019s associated with Baanx. Loans can subsequently be moved into crypto wallets or physical and virtual cards. For those who use Bitcoin and Ether as collateral, loan-to-value ratios of up to 50% are available, and approval can be achieved in one click.<\/p>\n<p dir=\"ltr\">Baanx is on the list of temporarily registered cryptoasset businesses with the FCA and also utilizes a lending license. The project\u2019s whitepaper states that it will \u201clend against any digital asset including cryptos, stocks, bonds and the emerging NFT asset class.\u201d<\/p>\n<p dir=\"ltr\">The volumes of money that can be offered through lending will depend on the volumes of tokens that are staked within its system.<\/p>\n<p dir=\"ltr\">Figures provided by Baanx suggest that the platform now has sold more than 600,000 white-label cards and accounts around the world \u2014 almost exclusively through branded corporate clients, including Tezos Crypto Life app, DeFi protocols, exchanges, and wallet providers. It is also planning to launch with a major wallet provider in the U.S. in the fourth quarter of 2021.<\/p>\n<div style=\"background-color: #f0f0f0; padding: 8px 21px; font-weight: bold; color:#253137;\">Learn more about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.baanx.com\/\" style=\"color: #253137\">Baanx<\/a><\/div>\n<div id=\"post-content\"><span style=\"font-size: 12px; color: rgb(169, 169, 169);\"><span style=\"font-weight: 600\">Disclaimer.<\/span> Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. <\/span><\/p>\n<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/how-crypto-can-modernize-the-world-of-lending\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# How crypto can modernize the world of lending &#8221; Lending has been around in some form for thousands of years \u2014 dating back to ancient civilizations where farmers would borrow seeds and use crops as repayment. The arrival of fiat currencies transformed the way economies were run back then. Indeed, you could argue that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":308467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy83YmJjODMzYzBjOGU0YjFiOWYzYmQwMjZkMTE1Y2FmOC5qcGc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,74868,77595,75037],"class_list":["post-308466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-lending","tag-tezos"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/308466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=308466"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/308466\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/308467"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=308466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=308466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=308466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}