A Singapore-based cryptocurrency exchange platform, TomoChain, founded in 2017 is reportedly set to launch a new peer-to-peer lending feature through its newly launched TomoDEX platform.
Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers.
The platform reported that its mission is to be a leading force in building the Internet of Value, designing its infrastructure, and working to create an alternative financial system that is more secure, transparent, efficient, inclusive, and equitable for everyone.
“TomoChain is envisioned to be a public chains that supports instant confirmation, near zero transaction fee, and smart contracts via a system of 150 Masternodes which will be an ideal solution for decentralized apps, token issuances and token integrations for small and big businesses alike.”
According to Cointelegraph, Long Vuong, CEO of TomoChain, stated the new P2P lending feature will require a “trusted custodian.”
Vuong further explained that all functionality is handled through auditable smart contracts and secured by the TomoChain blockchain. He said:
“The P2P lending service uses a unique and familiar spot trading order book approach to provide fix-term USDT loans of 1, 7, 30, and 90 days based on interest rate and position. Borrowers can flexibly back they loans through a choice of collateral too, including BTC, ETH, and TOMO.”
Vuong then added, ” TomoDEX is a facilitator that does not custody user funds or manage user accounts in any way unlike that of a traditional centralized exchange, so the onus is on the trader to be responsible for reporting gains and losses in their local jurisdictions.”