- Blockchain-based lending protocol Soil receives regulatory confirmation for its operations.
- Soil’s lending platform will allow investors in the blockchain to lend money to corporate outside the chain.
- The lending company’s CEO highlights the importance of regulatory confirmation and emphasizes transparency and safety.
Soil, a blockchain-based lending protocol, has received confirmation from its local financial markets regulator, affirming that its planned operations comply with the jurisdiction’s regulations. In essence, Soil is now regulated, allowing investors in the blockchain to lend money to corporate outside the chain, assuring secure returns for investors and easy debt for businesses.
Soil’s mission is to bridge the gap between borrowers, which include traditional businesses and private debt funds, and lenders, who are stablecoin holders. The platform aims to create a self-balancing DeFi protocol that facilitates a debt marketplace where established businesses from various industries can seek funding by applying for loans from stablecoin holders.
In Soil’s lending feature, lenders, both individual and institutional crypto investors, can earn secure and competitive yields backed by the cash flows generated by non-blockchain businesses. Meanwhile, traditional companies and financial institutions gain easy and flexible access to alternative financing through the debt marketplace.
Jakub Bojan, CEO of Soil, expressed the significance of this confirmation, stating, “We engaged multiple legal teams from different countries and patiently awaited the official confirmation from the local regulator that our planned activities on the Soil Platform are legal,” he said.
Bojan emphasized that while this is a significant achievement, the team continues to strive to ensure that Soil remains a leader in the cryptocurrency market, providing transparency and safety for its global partners and investors.
Soil’s unique approach to sustainable crypto lending involves bridging traditional finance (TradFi) with DeFi. By merging a crypto loan protocol with a corporate debt marketplace, Soil aims to enable direct crypto loans between market participants.
The firm’s operations are based in Estonia and Malta, two of the most favorable jurisdictions for global crypto projects. In addition to complying with current local regulations, Soil is preparing for the forthcoming EU MiCA regulation, a revolutionary change for the cryptocurrency world.
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