Ablrate rolls out blockchain MVP ASMX.io for secondary market lending community. 

With the growth of blockchain technology, businesses are increasingly becoming conscious of the peer-to-peer (p2p) value propositions in their business plans. One such company that is taking a pioneering approach in the p2p lending industry is Ablrate through its partnership with the ASMX platform. 

The opportunity.

According to Transparency Market Research, analysts predict that the market for p2p originated loans will reach US$897.85 billion by 2024. David Bradley-Ward leveraged this opportunity by forming the successful P2P lending platform Ablrate in 2014. His team subsequently created a sophisticated secondary market where lenders could buy and sell loans between each other. It has been wildly successful with over £38 million traded between the Ablrate community.

During the 5 years of Ablrate’s existence, Bradley-Ward has been an evangelist for liquidity within the P2P lending industry. “There is no doubt in my mind that liquidity is the key to success in the online lending industry,” he said. 

“For safety for lenders, being able to get out is as important, if not more important, than the ability to access a deal. In life, there will always be people who are willing to take more risks than others, and this is mirrored in an efficient market where those who are worried about risk will want to sell, and those who are willing to take more risk will make a price at which they will buy. An efficient market does not guarantee you will make a profit, but as Mark Cuban said recently, ‘…the only thing worse than a market with collapsing valuations is a market with no valuations and no liquidity.’” 

The ambitions of Bradley-Ward and his team have grown to include providing liquidity to all P2P lending platforms through an efficient and sophisticated technology.  This led to creating ASMX whereby he put together a team to develop a blockchain solution for lenders and borrowers who can meet on “one secondary market platform to access the buying and selling of loans globally,” he says. 

The blockchain aspect of the platform allows for faster and more efficient settlement, as well as a non-disputable ledger for loans. Simply put, existing platforms have “...a mixed bag of technologies and solutions.” According to Bradley-Ward, “ASMX will be a low cost, high value solution that can be easily implemented by platforms which will give a massive boost to their lending activities and functionality of the platforms for lenders.”

Features and Benefits.

ASMX is being developed to be layered on top of P2P platforms to provide “a low-cost, high value technological solution for platforms to allow trading on their own platforms and allowing global trading of their lenders’ debt.” The feature is a game changer for secondary market trading in the private debt market.

Better yet is the international network of loan originators that will be able to list loans and provide liquidity in those loans with institutional grade tools. As a result, debt can be bought and sold by professional traders through the technology provided by ASMX.

At first glance, the interface is simple, with features such as ‘remaining terms’ and ‘interest rates’ on loans. Loans can be searched by currencies and ‘originators’ or those companies who listed the loans, bid and offer prices and remaining term.

Digging deeper, the platform allows users to view the blockchain ledger for each loan and for each currency used across the platform. It allows auto matching of bids and offers and super quick settlement. 

Additionally, there is a chart functionality that determines the history of trades, marking both lowest and highest loan prices. “You can review payment frequency and how often the loan was traded,” said the entrepreneur, who, like most traders, wants to see buying and selling made easy. To his point, customers “look for buying at market price or the best price as possible.”

The future. 

The platform will have an admin console for better customer service and back office centralisation. “We want our users to continue to feel comfortable in placing trades and seeing the value of loans bought and sold on secondary markets, internationally--all found in one place!” exclaimed Bradley-Ward. 

To conclude, authorized lenders on all platforms in whatever jurisdiction will now have the ability to not only access the loans but also to use their existing technologies to integrate with the ASMX platform.