Depository Network DEPO — a new way for lenders to distinguish themselves from the host of competitors already in play

This article was initially published by Payment Week under the title DEPO, Depository Network, Lands Seed Funding For Blockchain Depository

Blockchain is, at once, one of those great buzzwords as well as a signpost of future development in the mobile payments and financial technology (fintech) center. A host of new developments have taken place along this path, and one of the latest such developments is from Depository Network, who tipped us off about its new DEPO system recently helping it bring in a $250,000 seed funding round.

With the seed funding in place, DEPO can move to open up blockchain operations for depository operations, and potentially shake up lending in the process. It might sound like a bit of a kludge, but essentially, your bitcoin can now be used as security in a loan thanks to the DEPO system in much the same way that gold or silver could be used, under some circumstances.

Essentially, as the folks behind DEPO pointed out, the world is increasingly digital, so why shouldn’t provision be made for digital loan collateral? With DEPO, not only do lenders get the ability to step into the digital world, but crypto holders also get access to improved liquidity. Being able to borrow against your stockpile of dogecoin or the like means that you don’t have to try and sell it to turn it liquid and then buy back in later on.

Better yet, DEPO supports a range of different crypto tokens as well as different currencies, allowing for a wide range of geographical options as well. With seed funding in place, a presale funding round is next in and developments will carry on from here.

It may sound strange, but we’re dealing with an asset class that certainly does have value. Just ask Overstock.com about that one, or anyone who’s sold an apartment or the like for bitcoin. So if it has value, and can be converted into cash, then why shouldn’t it serve as security on a loan? The notion that cryptocurrency is just a Ponzi scheme or the like holds less water with every passing day that it doesn’t collapse.

Only time will tell how many banks or lenders — especially mobile lenders — will go with this plan, but at the end of the day, it might well be a new way for lenders to distinguish themselves from the host of competitors already in play.