Digital asset software company AlphaPoint today announced the launch of the AlphaPoint Yield Platform available for use by marketplace and wallet operators using the company’s technology. Exchange and brokerage operators will have the ability to manage borrowers, lenders, rates, and distributions all on one simple to use platform featuring automated and manual settings and detailed reporting. End-users who leverage the new offering will have the ability to earn a yield on their assets through lending and staking offerings after opting into the service.
Over the previous two years, lending solutions to earn on assets have emerged as the next wave of innovation in the cryptocurrency industry. Total loan origination in cryptocurrencies from leading institutions has exceeded $10 billion and is one of the fastest-growing sectors in the space. A leading centralized cryptocurrency lender saw their outstanding loan book double in Q2 this year as compared to Q1, rising to a sizable $1.4 billion, with new loan originations increasing by more than 300% YoY. This growth is widespread across centralized crypto lending providers.
Furthermore, Decentralized Finance (DeFi) lending has become substantially more popular with active debt increasing almost 10,000% from $22.4 million worth of DeFi loans in Q1 2019 to over $2.3 billion in debt currently outstanding in Q4, 2020. In September 2020 alone, $3 billion of loans have been originated, more than 100x increase from the January 2019 baseline.
The AlphaPoint Yield Platform adds additional functionality to enable its customers to offer their own Yield products to end-users. This solution can be used stand-alone or on top of the company’s white-label products including Exchange, Brokerage, eOTC, Asset Issuance, Wallet, and Liquidity offerings. Properly regulated operators can now offer these solutions with streamlined integration with CeFi and DeFi.
“AlphaPoint customers have served over a million end users, enabling both retail and institutional access to digital assets globally. With this technology upgrade they can now offer attractive yield generating products to provide a fuller suite of financial services to their end-users,” said AlphaPoint Co-founder and CEO Igor Telyatnikov. “Global operators can now deliver a one-stop-shop for trading, liquidity, custody, and yield in their respective markets.”