There has always been a strong use case for companies looking to mix lending with cryptocurrency. So far, few of these efforts have been particularly successful. ETHLend may be the exception. The company is looking to move from crypto only lending into fiat lending as well.
ETHLend has made tremendous progress as a company over the past few months. This cryptocurrency lending firm has made a name for itself, and the company is looking to further expand its presence in the months to come.
As of right now, the firm is looking to obtain a license in the European region. ETHLend wants to offer fiat lending services to 30 different European countries. If this licensing proves successful, the company will also attempt to obtain a similar license in the US and various Asian countries. The US expansion would take a state-by-state approach, rather than span the entire country from day one.
ETHLend positions itself as a decentralized lending application on the Ethereum network, it will be interesting to see how this licensing process unfolds. With a focus on peer-to-peer lending, there is no reason the team can’t obtain the license it is seeking. However, the project aims to make financial institutions obsolete when it comes to lending, which may prove to be a hurdle when it comes to obtaining these licenses.
However, there are some aspects which will work in ETHLend’s favor. Every loan issued on the protocol can only have two outcomes. Either it is repaid in full, or the loan isn’t repaid and the lender obtains the borrower’s collateral to cover the default.
🚀BREAKING NEWS: ETHLend Expands to FIAT Lending: Licensing Process Has Initiated
Details about how ETHLend will provide additional compliance to cryptolending market and broadening our lending operations to FIAT lending in the link: https://t.co/k0HzscrzVk pic.twitter.com/Miq2x8ou1k
— Aave (@AaveAave) April 13, 2018
ETHLend’s CEO, Stani Kulechov, commented:
“Our next step is to implement KYC identification during the Q2 on the decentralised application by using a third party KYC provider and complying with all the applicable data protection laws. By exchanging our know-your-customer policy, we are de facto able to broaden our services to more institutionalised borrowers and lenders in demand.”