BitRss.com latest World Crypto News

Search and discover the latest Cryptocurrency updated Stories in Categories

24-7 World Cryptocurrency News about Blockchain, Technology and much more, only from Top Leading Sources

a16z backs DeFi project Goldfinch, which aims to reshape lending

Despite the slump in cryptocurrency prices, the number of firms raising in the decentralized finance (DeFi) market has continued to pick up. 
Lending protocol Goldfinch offers the latest example. The project announced Wednesday the completion of a $11 million fundraise led by venture capital investment giant a16z. The firm, which has grown by 2.5x over the last few months, provides borrowers the ability to take out an under-collateralized loan — a unique offering in a market where borrowers typically have to post more collateral than they want to borrow. 
"I'm not used to dealing with this many zeros," said Mike Hall, a former Coinbase product analysis. Hall co-founded Goldfinch with Blake West, who also spent some time at Coinbase as a backend engineer. 
While the DeFi market has typically been associated with rogue bands of retail traders, Goldfinch is wooing an array of institutions to help build out its platform. The three-sided market is made up of borrowers looking for capital, liquidity providers, and backers of the loans. It's being examined by credit funds managing billions that are looking to lend and financial technology firms that are looking to borrow. 
In a sense, Goldfinch mimics some of the features of the traditional lending market, where banks assess the creditworthiness of a given borrower based on their own credit and risk analysis. "The backers are the core participants that help determine credit worthiness," said West. 
Still, the mechanism by which users show their credit worthiness is decentralized, according to the project. 
"The protocol does this by using the concept of “trust through consensus”: that borrowers can show creditworthiness based on the collective assessment of other participants, rather than based on their crypto assets," a press release explained. 
The fresh capital injection will help Goldfinch make a few new hires, including a business operations manager and several software engineers. 
As for the raise, a16z participated along with Mercy Corps Ventures, A Capital, SV Angel, Access Ventures, Divergence Ventures. Former Coinbase CTO Balaji Srinivasan and Messari CEO Ryan Selkis also participated.  © 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

BitRss.com shares this Contents always with License.

Thank you for Share!

   
Tumblr
LinkedIn
Reddit
VK

WhatsApp
Telegram

Cool to know huh? Read the full Article

Read the full Article:  ⭲ a16z backs DeFi project Goldfinch, which aims to reshape lending


Search about Crypto News


BITRSS | CRYPTOCURRENCY WORLD NEWS

The latest Top News, only from Leading exponents of BlockChain, Bitcoin and different Accredited Crypto Currency Sources.

Since 2015, our Mission was to Share, up-to-date, those News and Information we believe to represent in an Ethical and sincere manner the current Crypto Currencies World: everything you are looking for, in one place!

We have always tried to give priority to the News; for this reason we have designed BitRss.com simple and intuitive, usable by all Devices, fast and effective.


| LEARN MORE ABOUT |

Today Most Popular News