U.S. Companies Can “Be the Bank” with ReserveLending+

Courtesy of B. Sanchez

Introduction

The time has come as our institutional DeFi product is finally in an alpha testing phase, and will very soon be ready for demo’ing to any U.S. based entities holding crypto on its balance sheet.

  • What is ReserveLending+
  • Security and the Compound protocol
  • The Role of the RIA, BD or Bank
  • ReserveLending+ Compliance and Custody
  • Our First Registered Investment Advisor (RIA) Licensee
  • ReserveLending+ Reporting, Analytics, and Monitoring
  • How ReserveLending+ Benefits $eRSDL Holders
  • RL+ conclusion

What is ReserveLending+?

ReserveLending+ is an institutional DeFi (decentralized finance) ecosystem and P2P (peer-to-peer) lending platform that empowers companies to optimize their net cost of capital onchain. Excess Bitcoin, Ethereum or USDC can earn interest at greater savings rates than offered by traditional banks and loans can be drawn at competitive rates for qualified borrowers.

Courtesy of Consensys

Security and the Compound Protocol

Tremendous growth has occurred across decentralized versions of lending and borrowing platforms, prediction markets, margin trading, payments products, insurance, and more. The DeFi ecosystem now represents an expansive network of integrated protocols and financial instruments worth more than $70B.

The Role of the RIA, BD or Bank

  • Us (aka. Residual Token Inc.) — the fintech and management services provider that built the platform, handles any required integrations with the Host, inputs the settings, monitors User (aka. Host’s customers) activity, reports User activity as required by the Host or regulator. We also help find Users for the Host, assist with onboarding and advocate for the Host.
  • The Host — The RIA, Broker-Dealer or Bank that licenses the software from Us. There are three considerations: Technology, Operations and Business Development. From the technology perspective, the Host provides the brand and style guide to Us so that we can match the User’s current experience with the Host. The Host provides us information on their KYC tracking system (e.g. KYC Chain, spreadsheet, Securitize, etc.) so that our software can properly gate entry to only those entities that are approved customers of the Host. From an operations perspective, the Host’s customary onboarding procedures remain unchanged. If the Host wants balances from the platform reported on a consolidated User page, we will work with the Host to make sure that information is available. This is the extent of Host’s responsibilities as a qualified, third-party custodian (“Custodian”) bears the atomic-swap moment custody risk possibly present in the software. From a business development perspective, the Host continues to offer its standard product suite with this one just being an additional reason why Users should choose your RIA, BD or Bank to do business.
  • Custodian — an SEC qualified custodian will have administrative access to the core smart contracts comprising our software. No changes to the core contract may be enacted without their approval and the rules for their approval are in line with escrow and custody rules today.
  • User — The Host’s customer looking for more banking alternatives, and wants to earn yield on their crypto. They also want the ability to borrow at reasonable rates without waiting.

ReserveLending+ Compliance and Custody

Commercial lending and borrowing in the United States is subject to numerous state and federal restrictions and guidelines. Among those include specific Know-Your-Customer (KYC) provisions and Anti-Money Laundering (AML) monitoring requirements. We are FinCEN registered, because even though we are not a financial institution, we wanted the ability to report on behalf of all ecosystem users activity that would be considered suspicious. We aim to exceed FATF guidelines by focusing on what U.S. regulators expect, and based on decades of regulatory experience in borrowing and lending across industries and collateral types.

The First Software Host

Lastly, we are looking to partner with an RIA, broker-dealer or bank to provide additional regulatory cover and support. In addition, the target host has access to traditional banking for crypto companies, allowing our customers both access to our DeFI platform and standard savings accounts using fiat at above average saving rates.

ReserveLending+ Reporting, Analytics, and Monitoring

We’ve spent the last nine months tweaking and improving the customer interface on our retail platform, ReserveLending. Bug bounties and regular public and private QA support are also in place to further ensure we are providing a robust, safe and transparent environment for our users.

How ReserveLending+ Benefits $eRSDL Holders

RL+ Conclusion

ReserveLending+ provides U.S. domiciled crypto-native and non-crypto-native companies the ability to optimize their costs of capital, and add utility to their own balance sheet by giving utility to their cash. Balancing costs of capital driven by the amount of capital needed at any given time or excess liquid assets is a key component of hitting KPIs in an environment of increasing people and material costs. We expect ReserveLending+ to address the needs of U.S-based, crypto holding entities and deliver results for the $eRSDL community.

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unFederalReserve

‘Credit vs Cash’ spot market fintech using blockchain protocols. Great liquidity access. Instantaneous settlement. $ersdl #DeFI #middlemarketdefi #uniswap