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