Lendingblock, the open exchange for institutional borrowing and lending of digital assets has received its full license as a Distributed Ledger Technology (DLT) provider from the Gibraltar Financial Services Commission (GFSC) supported by blockchain law firm, ISOLAS. This licence approval is an important milestone for Lendingblock as the company prepares for the launch of its platform, which will bring a critical missing piece of regulated financial markets infrastructure to the digital asset economy.
Receiving a DLT licence involves an extensive process to create and evidence compliance with the nine principles set out by the GFSC. These principles are designed to ensure that regulated businesses meet and maintain high standards, including risk management, corporate governance, customer care, security, and prevention of crime.
Steve Swain, CEO, Lendingblock, said: “Over the past 18 months, Lendingblock has set out on a journey to reinvent the traditional capital markets securities lending model by building something better that meets client needs through the digital asset lending market. We always put the needs of its institutional clients front and centre, so it was important for us to take the proactive step in becoming a regulated entity. Building a safe, secure and transparent digital asset lending exchange and healthy marketplace for clients has been our goal, and this included undergoing a detailed and extensive process to ensure regulatory outcomes were achieved with our regulator the GFSC. We are looking forward to bringing this platform to market to support our clients borrowing and lending needs and are grateful for the assistance that ISOLAS has provided us in reaching this point.”
The Hon Albert Isola MP, Minister for Commerce, HM Government of Gibraltar commented: “I am delighted that Lendingblock has been awarded a DLT Providers License by the Gibraltar Financial Services Commission (GFSC) and I congratulate the company on this wonderful achievement in meeting the high standards for licensing. It is 18-months since the DLT regulatory framework came into effect and we have seen a growing number of excellent companies and start-ups come to Gibraltar and work within this regulated framework; this will ultimately add to the legitimacy of the crypto markets as they continue to develop into the mainstream.”
Jonathan Garcia, Partner at ISOLAS who specialises in working with DLT companies, led on this matter.
Jonathan said: “From the outset, it was clear that Lendingblock believed that well-constructed regulation will benefit crypto markets significantly. We really enjoyed working with them, advising them through the process to obtain their licence. We look forward to continuing our work with them as continue to develop their products to market.”
Joey Garcia, the Partner at ISOLAS who heads up the firms Fintech practice, commented: “The objective of the DLT framework has always been to develop a purpose-built appropriate regulatory framework that not only provides regulatory certainty for firms using nascent technology for dealing with new asset classes but also seeks to protect the interests of the users of those businesses. It is a pleasure to welcome Lendingblock to Gibraltar.”
Jonathan and Joey were recently recognised by legal directory Chambers as well as in the publication’s inaugural FinTech guide, which highlights the leading specialists in the FinTech and DLT industry.
In gaining regulatory approval from the GFSC, Lendingblock will continue to work with several other regulators globally to ensure that the exchange meets its strategic aim to operate on a duly licenced basis for all territories in which it operates.
Lendingblock is an open exchange for borrowing and lending digital assets. It allows borrowers and lenders to enter into fully collateralized crypto vs crypto lending agreements. Lenders can earn incremental interest income on their long-term investment in digital assets, while borrowers can use their digital assets as collateral to enable borrowing to support shorter term trading, hedging and working capital needs. Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets, a market that has $2 trillion of assets on loan and generated $10 billion in securities lending revenues in 2018. For more information visit our website or follow us on Twitter and LinkedIn.
About ISOLAS LLP
ISOLAS is a full-service law firm providing commercial and pragmatic advice to its clients, corporate and personal, with an award-winning, market leading practice based on putting clients first and matching the client’s needs to the best person for the job.
With the expertise and dynamism of a firm at the vanguard of developments in legal solutions designed to tackle an ever-evolving range of issues, ISOLAS stays ahead of the curve and makes sure its clients are too.
ISOLAS is a market leader in the Fintech sector, having worked closely with the Government of Gibraltar and the Gibraltar Financial Services Commission on various niche areas within this space. It has been instrumental, through our participation in Government established working groups, in shaping discussions and regulatory proposals for cryptocurrency, crowdfunding and Distributed Ledger Technology.