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Startup from Seattle launches p2p-lending fund using blockchain and trading robots

Consulting company Algorithmic Inc., based in the Seattle suburb Bellevue, launches a new loan fund that will combine three hot trends of financial technologies at once: online lending, trading robots-advisors and blockchain technology.

Forex Magnates informs about this referring to the WSJ.

The company began operations in 2012 and operates in the market under the name LendingRobot. As of today, its customer base has more than 6 thousand of users and the amount of funds involved in alternative lending exceeds $110 million.

According to the CEO, Emmanuel Marot, currently the work on the creation of hedge funds in the financial and technology sector, which will buy loans from online lenders, is conducted. The stated purpose of the fund is to ensure the profitability of 7.5%, excluding defaults.

LendingRobot algorithms will automatically select for investment one of four available options, depending on the level of risk tolerance and investment horizons, just as do the robot-advisors, offering wealth management services.

Positions data and status of each of these investment options will be recorded, stored and made available to the fund customers via blockchain technology, making them safe from tampering and manipulation.

New LendingRobot fund should begin its work in January, and it will mark an attempt of financial and technological company to bring together technological advances, which for years have been developed in isolation from each other.

However, the company still needs to convince potential investors that online loans are still the profitable field of activity, despite the increase in default rates and low rates of some large hedge funds. Unlike many hedge funds, the company intends to charge a fee for the management of assets in the amount of only 1%.

Marot hopes that by the end of 2017 the fund management assets will be valued at $100 million. In addition, future plans of the company include establishment of retail fund for the work with less wealthy investors.

As ForkLog reported, before another Seattle startup iPayYou launched Bitcoin Direct service, which allows carrying out instant payments with iPayYou wallet at Starbucks mobile app.

Source: forklog

  • December 28, 2016 5:37 PM MSK