A securities lending platform for digital assets has gained in-principle regulatory approval in Gibraltar to operate as a distributed-ledger technology (DLT) provider.
The Gibraltar Financial Services Commission (GFSC) made an in-principle decision to grant Lendingblock authorisation as a DLT provider, which comes as the firm completes its platform testing period with more than 30 institutional globally.
Lendingblock said that it will continue to work with the GFSC as it strives to be granted a full DLT provider license, and as it looks to gain similar regulatory approval to operate on a duly licensed basis for all territories it currently has a presence in.
“As a true believer in the importance of getting our industry into regulatory shape, seeking authorisation from a leading regulator was always a priority for us. The GFSC has developed one of the most advanced DLT regulatory frameworks in the world and this in-principle decision is a tremendous achievement,” said Steve Swain, CEO and co-founder of Lendingblock.
“Securities lending is an important aspect of most traditional market participants’ return generating strategy and we see it as a particularly relevant to the crypto economy. Our technology and collaborative work with regulators and partners has enabled us to create the market and financial infrastructure needed to meet the demand for trading digital assets on an institutional level.”
Following the in-principle decision and the firm’s testing period Lendingblock has begun onboarding institutions in preparation for launch. Market participants can now sign up for access and will be able to borrow and lend Bitcoin, Ethereum, Litecoin and Bitcoin Cash across various maturities from early next year.