Lendingblock launches new agreement to protect crypto market participants
29 July 2019 London
Image: Shutterstock
Lendingblock has established a Global Digital Assets Lending Agreement (GDALA) to protect crypto market participants.
The GDALA governs the terms of a loan transaction between a borrower and a lender, by providing a bilateral agreement between accredited counterparties.
Participants can enter into a binding transaction via an onscreen confirmation inside the
Lendingblock exchange.
The agreement also outlines the tri-party structure in Lendingblock鈥檚 lending exchange, where there is an acting security trustee to manage the risk on behalf of the counterparties. The collateral is provided under separate wallet security terms.
With legal counsel and support from Norton Rose Fulbright, the GDALA framework is typically seen in the traditional capital markets, such as the International 麻豆传媒 Lending Association Global Master 麻豆传媒 Lending Agreements.
Steve Swain, CEO of Lendingblock, said: 鈥淭he introduction of the GDALA not only supports the endeavours of Lendingblock but leads the way for other industry bodies in the digital asset arena. This was a critical milestone for the launch of our platform, to support the lending and borrowing needs of our clients.鈥�
Daniel Franks, partner at Norton Rose Fulbright, commented: 鈥淲e have seen the benefits of
master agreements for decades in the traditional capital markets space.鈥�
He added: 鈥淭ogether with the also-innovative wallet security terms over the crypto collateral, the GDALA will greatly facilitate crypto borrowing on the Lendingblock platform, and we were delighted to be at the forefront of developing them. We hope that this enables the further progression of this cutting-edge market.鈥�
The GDALA governs the terms of a loan transaction between a borrower and a lender, by providing a bilateral agreement between accredited counterparties.
Participants can enter into a binding transaction via an onscreen confirmation inside the
Lendingblock exchange.
The agreement also outlines the tri-party structure in Lendingblock鈥檚 lending exchange, where there is an acting security trustee to manage the risk on behalf of the counterparties. The collateral is provided under separate wallet security terms.
With legal counsel and support from Norton Rose Fulbright, the GDALA framework is typically seen in the traditional capital markets, such as the International 麻豆传媒 Lending Association Global Master 麻豆传媒 Lending Agreements.
Steve Swain, CEO of Lendingblock, said: 鈥淭he introduction of the GDALA not only supports the endeavours of Lendingblock but leads the way for other industry bodies in the digital asset arena. This was a critical milestone for the launch of our platform, to support the lending and borrowing needs of our clients.鈥�
Daniel Franks, partner at Norton Rose Fulbright, commented: 鈥淲e have seen the benefits of
master agreements for decades in the traditional capital markets space.鈥�
He added: 鈥淭ogether with the also-innovative wallet security terms over the crypto collateral, the GDALA will greatly facilitate crypto borrowing on the Lendingblock platform, and we were delighted to be at the forefront of developing them. We hope that this enables the further progression of this cutting-edge market.鈥�
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