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Blockchain Comes to CRE Financing
Global upheavals can begin in some out-of-the-way places. The First World War was ticked off not by events in London or Paris, but by an assassination in Sarajevo, Bosnia. In commercial real estate, the first reported lending transaction based in blockchain technology will be the refinancing of a nail salon in Boise, ID, where The LendingCoin is based.
“This is an exciting time for all of us,” said Dave, owner of La Vie Nail Spa in Boise “I’m saving money and disrupting an entire industry at the same time.”
Thanks to its use of cryptocurrency, The LendingCoin enables commercial property owners who currently have loans through traditional banks, to refinance their properties at interest rates starting at .25% below commercial prime rates. Over the course of a year, a borrower can save thousands of dollars, according to The LendingCoin, every year.
The investment firm describes blockchain as “a digitized, distributed and secure ledger, that guarantees immutable transactions. This solves trust and security problems, when two parties exchange value.”
Having launched its currency in the first quarter of this year, The LendingCoin is taking the next step by financing its first commercial property in the current quarter. Q3 will see the launch of its lending platform, to be followed in Q4 by a token sale to the general public.
“Our goal is to improve on the conventional financing system, and by offering interest rates that are unmatched by any financial institution, we can pass those savings on to the borrower,” said Sam Warren, CEO of The LendingCoin. “Blockchain technology is the vehicle to help us achieve this.”
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