Page 10 - ASSET MANAGER 10 (EN)

MICHAEL BORTER
CEO cashare AG
Email: michael.borter@cashare.ch Phone: +41 41 558 53 95
10 • CASHARE
CREDIT INNOVATION FROM THE CRYPTO VALLEY
The Swiss fintech pioneer cashare from the Canton of Zug, operator of Switzerland's largest credit marketplace with over 28000 users, combines the traditional world of credit in Swiss francs with the new world of cryptocurrencies. A loan with cryptocurren- cies as a security is an attractive investment opportunity.
Author: Michael Borter, CEO, cashare AG
Cryptocurrencies as security
In a world first, a loan in Swiss francs is being financed by the crowd, with cryptocurrencies being deposited as a security. This loan is a type of Lombard loan, which is characterised by the provision of loan collateral in a variety of forms, including pledges of securities or bank deposits. The loan is granted in the form of a credit facili- ty. The cryptocurrency thus deposited can be pledged as collateral of up to 50%, depending on the currency and its current volatility. If the market value falls to a certain value, the borrower is asked to add further assets as col- lateral. If the defined level is not reached, the collateral is sold and the loan is serviced. The collateral will also be
sold to cover the loan if it defaults in accordance with the terms of the contract. This product is especially suit- able for investors who desire high security and attractive returns and want to exploit the potential of cryptocur- rencies with traditional instruments. For borrowers, the 'crypto asset-backed credit' is interesting if they do not want to sell their cryptocurrencies and are betting on ris- ing prices but still need liquidity in Swiss francs.
Security as an important prerequisite
Together with Aave, cashare combines the tradition- al world of loans in Swiss francs with the new world of cryptocurrencies. Aave Lending takes care of technical efficiency by means of blockchain, as well as storage, monitoring and sale of the security. With the pilot product ETHLend, Aave already has successful experience in the field of credit financing via cryptocurrencies. The price development of cryptocurrencies is continuously mon- itored and promptly reacts to corresponding changes. This is especially important in view of their high volatility. Fast reaction and maximum security for wallets are im- portant prerequisites for this security.