Crypto-Backed Lending included! — Cashaa the “Next Generation Banking Platform”
In the cryptocurrency realm or rather the blockchain niche, many platforms in the fintech area are vying for top spot in the minds of the masses as the prominent and go-to platform to do financial business transactions with.
One particular area that has been of hot interest in the fintech arena is the lending business or to be more specific, the crypto-backed lending business. It is a very lucrative market such that once you have established your system of lending, the money involved in the process literally works for itself and profits can be seen with little to no effort from an operational standpoint for the parties involved. With the advent of blockchain technology and crypto-backed lending, it is a pretty much a clear cut process, whereby, once executed correctly; reduces a lot of the riskiness involved based on smart contractual agreements where everything is easily done by agreeing to terms and conditions by a click of a button.
To put it in simple terms, crypto-backed lending involves a lender issuing a requested amount of either crypto or usually fiat to be borrowed by a borrower, for which the borrower will stake accordingly (usually 1.5x or 2x) the amount that is to be borrowed, and this staked amount will be held as collateral until full repayment has occurred either by abiding to the agreement or fulfilling the terms by default via the collateral which was held.
The brilliance of this model is that the amount being borrowed is fully covered by the collateral for which there is recognized room to cater for given volatility by way of the extra amount which is required via the staked collateral, hence the usual 1.5x -2x of the amount being borrowed as the collateral ask. However, this aspect only touches on the tip of what a crypto-backed lending facility provides. The real case that makes lending platforms a utility for viable consideration from a borrower’s standpoint, is the fact that the borrower does not have to initially liquidate their crypto assets to provide collateral for the loan, as the borrower can keep their digital assets and potentially benefit from the upside of holding their crypto assets. By staking the particular crypto coin they wish to use as collateral; the lending platform simply locks in these coins based on agreed terms for the duration of the loan agreement for which they will pay back in installments. The held crypto would simply be given back to them at the end of the completion of the loan agreement. Otherwise, if the customer was to default, the staked crypto will be immediately liquidated and the loan paid off in full; and any remaining collateral that was not needed to cover the repayment of the loan and fees, would be given back to the borrower.
There have been a number of notable platforms to date that standout which has come to market or are yet to launch their product to date in this particular fintech area of business. Some platforms that come to mind are Nexo, LendingBlock and one particular platform that have had their business model evolve to a wider set of financial products in a short time frame, and which has introduced ahead of time; the Crypto-Backed Lending offering to its platform, is a company called, Cashaa.
Nexo is a lending platform virtually available to anyone that has crypto and wants to borrow crypto (selected) or preferrably fiat based on the staking or use of crypto as their source of collateral. In doing so, they do not run the risk of losing their crypto nor their potential upside in crypto gains in the want or need of getting a loan. Aside from this, once the required crypto is put up as collateral for the amount of crypto or fiat that is requested, the loan is given and can be accessed instantly. Although the loan is immediately available to the user upon deposit of the required crypto collateral, the user is not charged interest until any part of the loan amount is withdrawn from the platform for use, this interest of course is relative to the amount of loaned crypto or fiat that is withdrawn.
LendingBlock is also a lending platform for which will be afforded to anyone as well, but the difference in their approach, is the targeted niche they will be catering to. The main client targets are institutions and companies who wish to have access to funding either for operational leverage or simply, profit opportunities. The loaned instruments involved would be directly based on crypto-backed lending and specifically crypto to crypto funding via a security lending type of facility. Since their targeted niche are institutions and companies, the security lending facility would be based on the agreed loan terms and conditions for which the cryptos involved would be exchanged. The end result is cash-neutral: the borrower is left with only the crypto securities they need and the lender with only the crypto securities collateral required and agreed on.
Brief Introduction; Cashaa has evolved into a full stacked next generation digital banking platform. Cashaa offers an array of financial products for which businesses and individuals alike can take advantage of. They will be offering:
1) Individual Banking accounts
2) Business Banking accounts
3) OTC (Over the counter) and P2P (Peer to Peer) Exchanges
4) Crypto<>Fiat gateway options
5) Insurance products
6) Crypto-Backed Lending (The highlight of this article)
7) Micro-Financing,
8)….. and much more in its vision!
Cashaa, in its infancy was initially focused on the the remittance market whereby it proposed to be the “Next Generation Banking Platform” utilizing the ease of transfer and lower cost of doing so via the blockchain technology on its platform along with potential financial products of interest that were part of it’s initial conception.
To date, Cashaa has had great developments, team expansion and partnerships since their launch and have been working feverishly to have their outlined financial products become a reality. The Cashaa Team has been quite dynamic in it’s approach in keeping up with what investors and potential clients are looking for in banking, and also for what extra features that digital banking can offer.
Cashaa has been sticking to its tasks of delivering what was outlined in their whitepaper, and also dynamically recognizing and exploring and acting upon lucrative additions to their financial product offerings. Cashaa has successfully added Crypto-Backed Lending to its arsenal of financial tools similar to a traditional bank would, but with crypto as it’s main category of collateral for execution of subsequent funding. The basic mechanics of Crypto-Backed Lending are generally the same as described earlier, so the following would serve to highlight the foresight of Cashaa’s Team on acting and proceeding with this particular branch of business development in moving forward to the benefit of potential investors and future customers and clients of the Cashaa platform.
Being able to offer an avenue for funding is a great business opportunity for Cashaa. It will serve two-fold in its journey; to maximize its business profitability & sustainability in the long run, and also to be recognized as a place where its customers can do all their business virtually anywhere, anytime, in one convenient outlet.
Businesses, especially, will welcome this branch of business to further utilize the platform as a ‘one stop digital banking’ application, not only for their basic remittance and payment needs but also as an all-in one convenient and cost-effective option for their day to day financial operating needs.
Similarly as the businesses are afforded this lending product and opportunity, the same can be offered to individuals who may wish to use this utility option as well for their personal needs.
The overall aim of Cashaa is to ease the burdens that both individuals and businesses experience when dealing with the traditional banks. Now Cashaa can be everyone’s go-to ‘Bank’, whereby the traditional banks are just an interim to work with, until digital banking becomes an everyday norm for most.
In addition to Crypto-Backed Lending, Micro-Finance is another form of lending for which Cashaa has acknowledged and will actively explore via the use of Crypto in a modern digital-age reality. Cashaa acknowledges this as an opportunity to give back to persons who may find it difficult to acquire financing via the traditional banking system; In this recognition, Cashaa see the importance for those persons to see their dreams come through as a potentially self-employed person or for those who may want to attempt an entrepreneurial venture of their own.
Cashaa micro-financing loans would be small P2P loans that would be issued by individuals on the Cashaa platform. These loans can be issued by a single individual or simply aggregated across a number of individuals who would contribute a portion of the total amount in fulfillment of the loan. CAS tokens will also be used to determine credit scores and these scores will be used as an integral part of the system to filter unreliable users who may only be harming themselves, since any digital system does not discriminate in its decision and policy adherence.
The Micro-Financing product will serve two(2) purposes:
1. To give Individuals who cannot obtain credit from a bank; an opportunity of actually having access to one without the lengthy red tape to be approved. Also, users of the platform in third world countries will be able to borrow money to start small businesses of their own or simply use the funding for their individual needs as needed.
2. The second purpose is to give access to new lending opportunities to persons interested in utilizing their stored funds in a productive and beneficial way for both themselves and to the user of the loaned funds. The lenders who choose to take advantage of these opportunities are individuals who would pledge a certain amount of money to loan out, and these loans will be distributed accordingly to a deserving entrepreneur or borrower in another country.
In Conclusion, Cashaa is constantly expanding and developing in the fintech arena as a leader, which is solidly positioning itself as a true “Next Generation Banking Platform” catering to the basic needs that are normally offered by a traditional banking institution and much more. Cashaa is offering a fully stacked array of financial products for both Individuals and Businesses. Through this initiative, Cashaa is truly being realized as a platform for all your Global Banking needs.
Interested in using the platform as an Individual, check : https://cashaa.com/individual.php
Interested in using the platform as a Business, check :https://cashaa.com/business.php
Main Website: https://cashaa.com/
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Acknowledgements:
cashaa.com
influxmoney.com : 1st picture of article (vehicle, property, personal, business)
nexo.io
lendingblock.com
