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.
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.”
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: