Local fintech launches new digital currency for trading loans

Small business loan online marketplace Marketlend has created a new digital currency – called Black, which it said would create a secondary market for its corporate loans by facilitating a process of “tokenisation” of assets over blockchain.

Marketlend will launch Black as a pilot project this week, giving 26 investors in one of the loans issued over its platform a digital wallet to hold their digital currency.

Marketlend founder and CEO Leo Tyndall said its digital currency would be backed one-to-one with Australian dollars, which would be held in trust for the investors.

Black can then be used to buy a “security token”, a digital representation of their interest in the loan, which can then be traded on Marketlend’s loan exchange, or other security token exchanges.

The idea is that this provides investors with an exit option, which should ultimately reduce the cost of credit.

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Source: Local fintech launches new digital currency for trading loans