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Tag: loans

The risky game of creating money out of nothing

Bankers get to create money out of nothing, through bank loans, and charge interest on it.

For this system to work, bankers do need to ensure the vast majority of that money gets paid back. But this is where they keep falling flat on their faces, because banking requires prudent lending.

If someone can’t repay a loan, they need to repossess that asset and sell it to recoup that money. This means that if they use bank loans to inflate asset prices they get into a world of trouble when those asset prices collapse.

In 2007, as the real estate and stock market collapsed the banks became insolvent as their assets didn’t cover their liabilities. They could no longer repossess and sell those assets to cover the outstanding loans.

So they needed to get most of the money they lended out back again, to balance their books and all the help they could get from the governments.… Read more...

Fidelity To Offer Bitcoin-backed Loans Through Nexo

Lending firm Nexo has partnered with institutional custodian Fidelity to bring professional bitcoin products to market, the company said in a statement Tuesday. The lender will leverage Fidelity’s enterprise-grade infrastructure to expand institutional access to its prime brokerage platform.“As a first step, the collaboration with Fidelity Digital Assets will expand Nexo’s ability to service and enhance its growing portfolio of assets under management and will provide an additional custody layer to Nexo’s military-grade security infrastructure,” per the statement.Nexo said the…

BIS urges regulation of DeFi

The central bank of central banks is worried about “decentralized finance.”The Bank for International Settlements, an umbrella group for central banks, said in a report this week that it’s concerned there’s a “decentralization illusion” in DeFi.DeFi is a rapidly-growing part of the cryptocurrency market that promises to deliver traditional financial products like loans and savings accounts without involvement from regulated middlemen such as banks.But regulators are increasingly concerned about platforms offering DeFi services that may not be as “decentralized” as advertised.”What we found…

Four inspiring blockchain journeys and stories from Odisha, India

Blockchain technology offers a great many advantages to many industries, with the financial sector being one of the most notable examples. It has the potential to have an even greater impact in developing countries, where blockchain-enhanced fintech can help improve financial accessibility for the 1.7 billion unbanked people around the world through services such as peer-to-peer loans and alternative currency payments and investments.This Is why it should come as no surprise that, while most of the first wave of cryptocurrency influencers such as Erik Voorhees, Charlie Lee, Tim Draper,…

Deloitte In Association With MachineHack Present Machine Learning Challenge

There seems to be no end to bad loans in the country. According to the Reserve Bank of India, the overall bad loans as of March 2021 stood at INR 8.35 lakh crore, compared to INR 8.96 lakh crore in March 2020.

In a bid to solve the loan defaulter problem, Deloitte, in partnership with MachineHack, is launching a hackathon for data scientists and machine learning practitioners called ‘Machine Learning Challenge,’ from November 29  to December 13, 2021. The winners of the hackathon will get a chance to win cash prizes worth up to INR 1 lakh.

Let the…

How Companies Use Artificial Intelligence to Detect Lying

Startups may become the first to embrace new deception detection technology to screen customers for loans or insurance fraud because they seek an edge against conservative, well-established banks and insurers that rely on traditional credit scores and background checks. 
“We do not use such technology today,” says Guy Goldstein, co-founder and CEO of Next Insurance, which targets small businesses and the self-employed. “I would imagine we would use it in the future, and it could mitigate risk and have significant impact on a business like Next.”
The promise of…

Does DeFi Put Your Portfolio at Risk?

As cryptocurrency prices continue to soar, decentralized finance (DeFi) is becoming more popular, as well.
DeFi is generally defined as the process of executing financial transactions without an intermediary, such as a central bank. Through the use of smart contracts, two individuals can transfer funds, lend or borrow money, and earn interest on loans without having to go through a financial institution.
Supporters of DeFi believe it could someday become mainstream, potentially removing the need for central banks and other financial institutions. Could that put your portfolio at…

2 Top Cryptocurrencies Operating in the DeFi Space

Image source: Getty Images

DeFi, or decentralized finance, are financial systems that enable decentralized blockchain technology. The players in this space aim to lower transaction costs as well as eliminate third-party authorities such as banks and financial institutions. Right now, there are several fintech companies that are leveraging the DeFi tech to offer products including savings accounts, loans, and insurance, among many others.

The DeFi ecosystem is expanding at a rapid pace and has grown from just a million dollars in September 2017 to more than US$90 billion in…

How Does Your Phone Know Which Calls Are Spam?

If you have a phone in the United States, you’ve probably gotten a call from Susie about your car’s extended warranty. Or Carol who needs to tell you about recent changes that will impact your student loans. Or maybe even that guy who calls to talk to Fredrick (or Carl or Santiago) about donating to a police (or firefighter) charity, but maybe you can help him instead.

These robocalled recorded voices and the scams they pitch aren’t alone in their onslaught against our phones. Scam calls are ubiquitous.

In 2020, one in five U.S. mobile phone users received three or more scam calls…

New DeFi CreDA Platform Aims to Eliminate Risks from the Cryptocurrency World

Leveraging existing blockchain infrastructure, the company said it provides a trust architecture for the crypto ecosystem and a link between on-chain and traditional financial systems. By following the example of traditional consumer credit agencies, CreDA introduced its concept of personal credit scores into the $200bn decentralised finance (DeFi) ecosystem populated by cryptocurrencies such as Bitcoin and Ethereum.
Cassie Zhang, CreDA’s Chief Operating Officer explained that, in traditional finance, the total value of credit-based, unsecured loans was several times that of…

EGLD Crypto Prices Soar as Elrond Rolls Out New ‘Maiar’ DEX

Decentralized finance, or DeFi, is taking the world by storm, and with good reason; the need for banks, with their fees and red tape, is becoming lesser by the month thanks to DeFi products. Those using DeFi products don’t need proof of income for services, they don’t need to apply for loans, and they don’t need to keep their currency locked in an account in order to earn passive income. Elrond (CCC:EGLD-USD), with its newest decentralized exchange (DEX) launch, is bringing those services front and center to its users. Not to mention, the EGLD crypto is rocketing as a…

1kx leads $5m funding round for NFTfi expansion

Innovative NFT-based marketplace NFTfi has secured $5 million in a funding round supported by day one investor 1kx and attracted Ashton Kutcher’s Sound Ventures VC firm. Other participants like Reciprocal Ventures and Scalar Capital put the NFT collateralised loans platform in good company with other successful start-ups which also received similar backing.
NFTfi allows users to secure loans against non-fungible tokens, or to offer loans on NFT assets

The South African start-up was founded by token engineer and smart contract developer Stephen Young in 2020. It grew…

A Smart Lending Protocol with Credit System


The Soda Protocol platform was created to merge DeFi Lending with the trustful Sol ID Credit Ranking system. Basically, Soda Protocol’s platform empowers its users to stake SODA tokens to generate liquidity rewards for themselves.Soda Protocol, which successfully passed the Alpha Devnet community test run for a period of six weeks, is an innovative lending solution now available in the mainnet. Soda’s innovative capital-efficient lending platform is opening the path towards integrating lending with a credit rating system.More specifically, Soda Protocol operates over loans traced by…

BNPL Pay to launch uncollateralized lending this November

Linking traditional TradeFi borrowers with DeFi lendersUncollateralized lendingIndustry-leading sustainable yieldsMainnet live in NovemberAudited by Hacken CyberSecurity ServicesImmuneFi White Hat Bounties launching soonThe BNPL Pay Protocol will help real-world borrowers secure loans from the blockchain with its innovative network of decentralized banking nodesUncollateralized credit markets are valued in the trillions. Now, real-world borrowers have easy access to the abundance of capital in the decentralized finance (DeFi) space.A recently launched project, BNPL Pay, is enabling this…

TrustNFT’s Community Together with AI to Empower NFT Backed Loans

To that end, community members have a variety of expectations for what they would like to see adopted, especially if there is potential for it to have a significant and beneficial impact on the network.
More so, these sets of people have their own respective roles to play, both in the network’s governance, and in ensuring that the day to day operations run smoothly and efficiently.Vismantas Motiejunas, the CEO and co-founder of TrustNFT, explained about the typical role that their community members will play in the project, as well as their other expectations. According to him the…

Is AI the Answer to Determine the Price of NFTs? TrustNFT says yes.

With skyrocketing NFT prices, the question arises of how to determine the price and value of the asset to ensure the maximum benefit to the investor? The NFT market, which is still developing, faces significant challenges in providing liquidity, monetizing assets, and, most importantly, evaluating the NFT.

First to implement AI
NFT related financial services are emerging in the market, like offering NFT collateralized loans; however, there is no reliable way to evaluate NFTs. Accurate evaluation is crucial to all solutions of using NFTs as collateral.TrustNFT, a decentralized NFT loan…

TrustNFT’s Community Together with AI to Empower NFT Backed Loans. By DailyCoin

TrustNFT’s Community Together with AI to Empower NFT Backed Loans.

One of the most important driving factors behind any decentralized protocol is its community, and that includes developers, validators, token holders, and other stakeholders that contribute to the project’s success in any way possible.
In this regard, TrustNFT is made up of a community of people who share the same interest, one that ultimately aims to ensure that the protocol achieves its set goals and objectives.
To that end, community members have a variety of expectations for what they would like to see adopted,…

Cross-chain lending platform aims to make DeFi loans more flexible

Blockchain technology and its associated cryptocurrencies were designed to make tools of the financial industry available to anyone with an internet connection. Like traditional banks, cryptocurrency assets offer all of the same products, including borrowing and lending, only in a decentralized format to reduce fees and discrimination. Since decentralized finance (DeFi) eliminates intermediaries from the equation, equal opportunities are given to billion-dollar companies and regular humans, and higher interest rates also prevail. In practice, most decentralized loans today are conducted…

Loan or Earn with Bitcoin & Cryptocurrency Loans

As blockchain technology and its associated economy continue to mature, a growing number of projects are aiming to provide services that have been the mainstay of more established, and traditional entities.Nowhere is this more evident than in the decentralized finance (DeFi) sector, and BlockFi is a wealth management platform that enables users to earn interest on their digital assets as well as borrow funds by using their cryptocurrency holdings as collateral.The project aims to disrupt the financial industry by allowing people to put their digital assets to use, and by offering…

DeFi — the ‘Wild West’ of crypto — is set to face regulatory crackdown

The fast-growing decentralized finance industry could be about to get a rude awakening.Decentralized finance, or “DeFi” as it’s commonly referred to, is a trend in cryptocurrencies that first started gaining traction in 2020.It’s been called the “Wild West” of crypto — hoards of computer programmers trying to bring traditional financial products such as loans to the blockchain.The idea sounds promising. In theory, anyone could lend and borrow digital…
https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html

Coinbase Users Now Can Use Bitcoin as Collateral for Loans up to $1Million


Coinbase is the leading cryptocurrency force in America. The exchange is fully regulated and licensed to support all U.S. states except Hawaii.In addition to offering services, ranging from cryptocurrency investing to a wallet for retail investors as well as its own U.S. dollar stablecoin.Coinbase now allows Bitcoin holders to borrow fiat currency by using their Bitcoin as collateral.Coinbase Expands Bitcoin FunctionalityIn the beginning, the US exchange only supported Bitcoin. Over time, it…

Crypto DeFi protocols lost $1.4 billion this year but recovered over half of it

Decentralised finance (DeFi) lost $1.4 billion to exploits and bugs this year so far, but more than half of that has been returned.
The net loss comes up to around $680 million, according to The Block’s Data Dashboard.
Flash loans are the most common exploits of DeFi protocols as seen during the sale of a’ CryptoPunk non-fungible token (NFT) for an eye-popping $532 million last week.
Decentralised finance (DeFi) applications have been growing multi-fold this year, and so have the…

CBDC Impact on Banking Sector Could Be Manageable: New BIS Report

According to the report, risks to financial stability depend on the take-up, or rate of adoption, of a CBDC as well as bank funding, lending and resilience. If take-up is too fast, it could throw the existing financial and banking systems out of balance, the report says. The prevailing fear is that the use of any CBDC would require a shift of funds out of bank deposits and into digital cash. Without bank deposits, banks won’t have the funds to issue loans that help them make money. Should…

Everything you need to know about decentralized finance (DeFi) — Quartz

The term decentralized finance, or DeFi, goes back to a Telegram chat in 2018. That’s when a group of software developers and entrepreneurs were trying to decide what to call their movement of new-breed financial services that would be automated, built on a blockchain, and capable of stripping out traditional banks.Three years later and DeFi is big business. A user with a crypto wallet can trade digital assets, get loans, or take out insurance, among many other things. Some $90 billion of…