Credora announces plans to provide collateralized agency lending through newly licensed Bermuda subsidiary, expanding marketplace offering for institutions
NEW YORK, Aug. 28, 2023 /PRNewswire/ — Credora, the lending and credit intelligence infrastructure provider, today announced that it has received a Bermuda Class M Digital Asset Business License. Bermuda is a leader in the digital asset space and has a clear regulatory framework for varying types of digital asset businesses. The Class M License provides the optimal environment for new and innovative models seeking regulatory guidance.
Through the license, Credora plans to serve a larger global customer base and extend the company’s regulated presence, which includes existing Credora subsidiary MSB registrations in Canada. In the coming weeks, Credora will offer and support collateralized agency lending via the Instant Lend Feature. All Instant Lend collateralized lending activity will transact through the newly licensed Bermuda subsidiary, Intermediary Services Ltd.
Amidst the failures of the principal lending market last year, Credora built a platform on top of a fundamentally different model, with transparency and risk management at the forefront. Credora’s Instant Lend Feature operates an agency lending model, enabling a marketplace which connects lenders and borrowers, facilitates credit information sharing, assists price discovery, and streamlines execution. The marketplace design allows lenders to choose the appropriate risk level and simplify operations through Intermediary Services.
Intermediary Services’ custody infrastructure will secure collateral assets in client-by-client segregated wallets powered by Metaco, providing complete transparency for participants in any loan. The flexible collateral system will include automatic margin calls and liquidations, ensuring reliability during dynamic markets.
Darshan Vaidya, CEO and Co-Founder of Credora, stated: “We are thrilled to continue to work with the Bermuda Monetary Authority and grow our business under the Bermuda regulatory regime. Although it has been a challenging environment for digital asset lending, we value the BMA’s support for more transparent business models, and shared interest in making digital asset lending more secure for all participants.”
The feature will be live for eligible Lenders and Borrowers on the Credora platform following a subsequent announcement. If you are interested in learning more, contact the Credora team.
Walkers Global, an industry-leading international law firm, acted as the primary legal advisors to Credora in this matter.
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SOURCE Credora