Algorithmic Inc. from Seattle is going to launch a p2p-lending fund, applying blockchain and trading robots
Algorithmic Inc. is a consulting company Seattle Bellevue-based, is going to launch a new loan fund that will combine three of the hottest fintech trends: online lending, trading robots- advisors and blockchain technology. According to Forex Magnates.
The company began operations in 2012, operates in the market under the name LendingRobot. At present, its customer base consists of more than 6000 utilizers, and the amount of funds involved in alternative lending exceeds $ 110 million.
Emmanuel Morot, CEO of the company, told that they were working on the creation of a hedge fund in the fintech sector, which would buy loans from online lenders. The stated target of the fund is to get a profitability of 7.5%, excluding defaults.
LendingRobot's algorithms will automatically select for investment one of the four available options, depending on the level of risk tolerance and investment horizons, just as do robot - advisors, offering wealth management services.
Data on the positions and the status of each of these investment options will be recorded, stored and made available to customers of the fund via blockchain technology, making them safe from interventions and manipulations.
LendingRobot's fund should begin its work in January; it will be marked as an attempt of fintech companies to bring together technological advances, which for years were developed in isolation from each other.
However, the company should convince potential investors that online loans are still the profitable field of activity, despite the increase of defaults and low rates of some large hedge funds. Unlike many hedge funds, the company intends to charge investors fees for asset management in an amount of only 1%.
Marot hopes that by the end of 2017, the fund management assets will be valued at $ 100 million. Besides, future plans of the company - to register a retail fund that will work with less wealthy investors.