Institutional Cryptocurrency Lending Platform

Let’s say you are a software house that prides itself on offering world-class technological expertise and IT development for blockchain, cryptocurrency, and telecommunication companies at a reasonable price and on time. And you like challenges. Then, one day, you are approached by a cryptocurrency lending company, with a mission of creating a financial infrastructure that encourages the borrowing and lending of cryptocurrency assets, to develop the code for programmers from the ground up. Do you take it?

Industry

FinTech

Technology

Python, AWS, Terraform, Kubernetes, Async-python, Docker, React, Node.js, Truffle Suite, Ganache Ethereum

Country of origin

Background

Lendingblock is the first cross-chain institutional digital asset lending exchange. With a fully automated engine for counter-parties and an over-collateralised loan model, borrowers and lenders have the opportunity to make and take loans in a marketplace that provides transparency, security and price discovery – something that today’s traditional securities lending or repo markets don’t always allow for.

As the traditional financial world continues to converge with blockchain technology and a new age of finance, Lendingblock is the much-needed infrastructure for institutional investors to facilitate their everyday investment strategies when it comes to digital assets.

Challenge

The Lendingblock team had an idea for a platform that allows for a secure and fully automated exchange of cryptocurrency values across the entire loan lifecycle. While the loan is a peer to peer loan, Lendingblock acts as the tri-party security agent, managing the loan administration and overseeing the collateral maintenance throughout its term. Full software development was needed to create this tri-party marketplace, which was all underpinned by blockchain technology.

Due to this model, it was important to find a professional and highly-skilled tech team that was able to transform this vision into reality.

Solution

A full software development life cycle was needed to provide business design infrastructure to system operations.

Secure platform - with high volumes of digital assets transacting on behalf of institutions Lendingblock needed 150% certainty that the money stays secure throughout the loan lifecycle.
Python - a simple, secure, and scalable backend language used throughout this complex project.
DevOps - services like containerization, microservices, log management deployment automation, continuous integration and continuous delivery of block nodes.
Backend is made up of many microservices, orchestrated using Kubernetes managed by AWS EKS.
Frontend development using React and ECMAScript 2018.
Internal Testnets for BTC and ETH were created in order to test E2E for the whole platform without involving hundreds of dollars’ worth of crypto assets.

Key functionalities

Life-cycle of the loan management

One of the flagship features of the Lendingblock exchange is the precise management of the entire life-cycle of the loan. The centralized Order Book matches lenders and borrowers and allows both parties to choose their own terms. For each loan, collateral must be collected then closely monitored for market movements. An automated margin call allows customers to bring the collateral to the correct level.

Introducing crypto regulations

Essential to Lendingblock’s existence is having the appropriate legal, compliance and regulatory frameworks set up in a way that proactively meets the needs and protects its institutional clients. In addition to gaining in-principle regulatory approval from the Gibraltar Financial Services Commission, Lendingblock is integrating with a number of recognized suppliers to support core platform processes and ensure security of assets and minimize counterparty risk.

AML/KYC compliance

Lendingblock’s own due diligence will be supported with additional KYC and AML processes from ChainAnalysis. Integration with Lendingblock’s sub-custodian Vo1t will provide cold storage for collateral held off line. Automated liquidation will also be integrated through a credible third-party provider.

Warm wallet

Lendingblock’s proprietary warm wallet solution has been developed through the creation of a separate platform that only allows a small number of pre-approved addresses to access. This warm wallet technology is located in a separate network that has no incoming or outgoing internet access, providing full security.

Private keys

Private keysare stored in an industry-leading vault provider, which provides maximum security, data, and secrets management.

Results

The creation of a secure, transparent and automated lending platform that meets the needs of an institutional audience. The exchange is blockchain agnostic and allows market participants to take their assets on and off the platform to use for their specific investment strategies. The platform allows users to generate interest on their passive investments or to take a loan for their specific institutional needs such as working capital, hedging, shorting or arbitrage strategies.

Used technology

The tech stack:

Testimonial

Customer opinions proves we are trustworthy.

Steve Swain

CEO of Lendingblock

Lendingblock partnered with Ulam Labs to develop a best in class digital asset lending platform. We have been impressed by their professional approach to all tasks and their extensive knowledge of the blockchain amongst the team. Through the hard work of Konrad and his team of developers, we're confident that we're providing our institutional clients with a safe and reliable lending experience.

And that’s all...

Now, it’s your turn! Are you excited to start the process and learn more about your journey with Ulam Labs? Don’t hesitate to contact us with your questions.

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