Lendingblock, the open exchange for institutionalised borrowing and lending of digital assets, has been granted a Distributed Ledger Technology (DLT) Provider licence by the Gibraltar Financial Services Commission (GFSC). The award of the licence represents a significant achievement for Lendingblock and an important milestone as the company prepares for the launch of its platform.
Seeking to set a new benchmark and industry standard in crypto, Lendingblock recently created the first Global Digital Assets Lending Agreement (GDALA). By providing collateralized borrowing and lending, Lendingblock believes it can support shorter-term trading, hedging and working capital needs, which mirrors the traditional financial markets, aiming, it claims, to set a new benchmark and industry standard in crypto.
Obtaining a Gibraltar DLT Provider licence was an important step for Lendingblock, involving a detailed and extensive process in collaboration with the GFSC with the support of one of Gibraltar’s leading blockchain-focused law firms, ISOLAS LLP. The process include the creation and evidencing of compliance with the GFSC’s Nine Principles for DLT regulation which are specifically designed to ensure that regulated businesses meet and maintain high standards, including in the areas of risk management, corporate governance, customer care, security, and prevention of crime.
Quoted in the company’s news release of 15th August 2019, Steve Swain, Lendingblock’s CEO, said:
“Over the past 18 months, Lendingblock has set out on a journey to reinvent the traditional capital markets securities lending model by building something better that meets clients needs through the digital asset lending market.
“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.
“Building a safe, secure and transparent digital asset lending exchange and healthy marketplace for clients has been our goal, and this included undergoing a detailed and extensive process to ensure regulatory outcomes were achieved with our regulator the GFSC. We are looking forward to bringing this platform to market to support our clients’ borrowing and lending needs and are grateful for the assistance that ISOLAS has provided us in reaching this point.”
The company also quoted Albert Isola, Gibraltar’s Minister for Commerce, as having commented:
“I am delighted that Lendingblock has been awarded a DLT Providers License by the Gibraltar Financial Services Commission (GFSC) and I congratulate the company on this wonderful achievement in meeting the high standards for licensing.
“It is18-months since the DLT regulatory framework came into effect and we have seen a growing number of excellent companies and start-ups come to Gibraltar and work within this regulated framework; this will ultimately add to the legitimacy of the crypto markets as they continue to develop into the mainstream.”
Lendingblock has said that it will continue to work with other global regulators to ensure its exchange is compliant and receives regulatory approvals in all the territories in which it operates.