LiqiDT

Benefits to Lenders

Free up Capital:  Loans can be sold in whole or in part, and administration costs are lowered through use of our own independent loan management services.  We can sell both syndicated and non-syndicated debt, as well as both performing and non-performing loans.  All loans are tokenised, and the retained tokens can be sold off at any stage across our capital markets.

Increased Lending Power: Lenders need only write part of a new loan, with the balance sourced from across the capital markets at the cheapest prices, thanks to our reverse auction.  We provide access to cheap and diverse capital that can be harnessed for both new and existing debt sales, the level of which is controlled by the bank/institution.  The bank/institution is able to act as guarantor for the debt product without having to deploy capital, and the ability to lend capital to opportunities is not necessarily constrained by the size of the asset base.

Reduced Risk: Default risk is moved from the bank to the market, with information asymmetry reduced through the provision of independent management through LiqiDT and regular credit rating through our partners.  Capital ratios present less of a challenge and banks can easily restructure their portfolios through harnessing our markets, moving in and out of sectors, regions and currencies.

Increased Control: Debt can be registered, but does not have to be sold.  What is important is creating a steady distribution tool for banks and institutions to manage their  LiqiDT and returns, using it as little or hard as they like.  Institutions decide what to put into the market, when and how, with the market determining the price paid.  Institutions and banks retain relationships with their borrowers as all capital raises can only come through members, with LiqiDT focusing on market discipline, membership, trading and compliance.