The blockchain-platform Cereal will provide new credit opportunities for participants of the crypto-currency market. On June, the 6th fintech-startup Cereal announced start of the development of a credit blockchain-platform. It will allow the crypto community participants to receive loans in fiat money with crypto-currency assets and equipment for mining as security.
Compared to bank lending, the process of approving a loan will take less time, because Cereal excludes the scoring procedure. The platform uses an automated calculation of the maximum amount of available credit. After registration, the Cereal client will be able to choose the terms of the loan: the amount of the deposit, the loan term and the country in which he wants to get the money. Then he’ll get instructions on making a deposit and withdrawing fiat money. The deposit will be kept by Cereal on “cold wallets”, that guarantee a high level of security. The platform is going to automate the processes of storage, return and sale of deposit assets through smart contracts.
The platform will offer several loan options, including credit cards and lines of credit for business. In the first case, after transferring the deposit to the platform, customers can receive a card by courier service or in the offices of Cereal partners. One can withdraw money from ATMs or branches of the company’s partners. Credit cards have a grace period, during which one can return funds to his account without paying interest.
Credit lines are suitable for businesses that receive income in the crypto currency – crypto-exchanges, companies that conduct ICO, miners. The feature of the credit line is an increased amount of available credit compared to collateral for individuals. This allows to cover all operating expenses, which are usually paid for by fiat money – purchase of new equipment, expansion of business and wages.
“In the crypto-currency market, there are no loans with assets as security, in principle. Today, owners of crypto-currencies and related resources often have to choose between preserving their investments and withdrawing them into fiat money to cover the daily financial needs or operating costs for mining equipment, the expansion of the fleet of devices and maintenance, “- says Sergei Wart, co-founder and CEO of Cereal .
“Cereal uses the blockchain to optimize a complex, often biased scoring procedure, providing a high level of security and trust between participants in the crypto currency market. With the help of the Cereal platform, we are going to create an ecosystem of high-quality and affordable credit products for the crypto community, ” – he adds.
According to the founders, Cereal is not a revolution, but rather an evolution for the credit market. Around the platform an ecosystem is formed, in which crypto currency holders, financial organizations, investors, retailers and manufacturers will interact with each other. Some will be able to receive loans, while others will invest in issuing loans to borrowers and earn profits. The Cereal token will form the basis of a universal loyalty program for all participants. To date, Cereal has completed a private pre-release of CRL tokens.
The growing lending market based on crypto-currency assets is estimated at $ 30 billion, according to Unchained Capital, a financial services company that pioneered the provision of loans secured by crypto currency.
Cereal is a new generation of credit blockchain platform, which allows receiving loans in fiat money for crypto assets. Its founders are aimed at a complete rethinking and gamification of the credit market and the development of a credit network for holders of crypto-currencies and assets associated with them.
Learn more about the project: https://cereal.cryptonomos.com