One blockchain lender has seen the value of its total loans increasing to $1 billion since the United States Federal Reserve announced its emergency stimulation interest rate cut last week. An announcement on March 10 revealed that the lending firm named Figure Technologies (which claims to be the first fintech to bring lending to the blockchain industry) said that loan applications with the firm soared by 300% since the Fed’s action.
Ever since its launch in 2018, the blockchain lender has used its blockchain named Provenance to process consumer loans. The loans will be one year on, and the firm claims that it was originating $85 million of loans per month for itself and other major lenders.
In December 2019, the firm went on to seal over $100 million in a Series C funding round which was led by Morgan Creek Digital and in participation with Mitsubishi UFJ Financial Group and its venture capital arm, MUFG Innovation Partners.
Among the blockchain based lending solutions, the firm issues 5-minute home equity lines of credit (known as HELOCs in the cryptonews) in which the borrower uses their house as collateral for the loan.
The firm’s founder and CEO, Mike Cagney, says that the blockchain lender’s platform is being built on the Provenance blockchain. It was crucial to support the growth and innovation of such lending products. And as more central banks around the world move to lower rates in a bid to offset the economic impact of the Coronavirus, Cagney said:
“The 300 percent increase in applications suggests consumers are eager to take advantage of unprecedented lower rates across mortgages, HELOCs and student loan refinancing.”
The firm also indicated that the average size of loans issued in the recent lending surge amounted to approximately $50,000 per household. As such, he noted that the new solutions will be rolled out tied to these lower rates “in the near future” as his statement in the blockchain news showed.
While the traditional markets floundered amid the health crisis, Bitcoin (BTC) remains stable below $8,000 and faced losses. One commentator who stands behind the Bollinger Bands trading indicator named John Bollinger noted:
“Bitcoin fell victim to the COVID-19 panic. I truly did not see that coming, I thought it might act as a safe haven asset.”
Bollinger added that the safe haven status remains “entirely psychological” and is a “matter of perception, not fact.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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