A growing number of companies continue to unlock the possibilities and opportunities in blockchain technology, particularly in the financial industry. Tech titan IBM has gotten involved and assisted businesses to integrate blockchain technology and ensure the efficiency of transactions.
Versara Trade, a New York-based company that has been at the forefront of the marriage between blockchain and fiat lending, is releasing a new wallet designed for investors. Based on research done by the company, they are responding to an increased demand for a platform that offers banking services such as investment and digital asset management.
The company seeks to unite both the crypto and the fiat worlds with their wallet as the interface for their platform.
The Versara Trade wallet is the first of its kind in the marketplace and offers users the opportunity to invest in multiple markets that offer high returns. Users will also be able to send and receive digital assets quickly with just a single click.
“There are hundreds if not thousands of crypto wallets in the market right now. But only a dozen of them let the users invest their crypto assets right inside the wallet,” Sean Liu, the founder and CEO of Versara, explained. “Even for those who do provide investment products in their wallets, due to the constraints on their market capacity, you’ll usually find the supply of those products is so limited that you can hardly get a chance to buy into them.”
Liu noted that the Versara Wallet provided investment opportunities in trade finance, which is a market large enough to carry all the crypto assets around the world. “We’ll never run out of supply of our investment products. Therefore, Versara Wallet will actually be the first wallet that is capable of generating returns for all its users.”
The decision was a result of an in-depth investigation by the Versara team, made up of representatives from global banks like Citi and Goldman Sachs. Through a gathering of data based on market research and conversations with industry leaders, it was evident there is an increasing demand from the market for a platform that offers banking services like digital asset management and investment. Versara responded to their findings by stepping up and becoming leaders in the cryptocurrency space.
A wallet designed for investors
The Versara Wallet will be the first crypto wallet that allows crypto holders to do more than simply store, send and receive their digital asset freely. It will also allow them to invest in multiple markets and get high returns. This will be the first product of its kind that people can use to invest within the cryptocurrency marketplace. The company expects to release the first version by October.
“We’ll keep iterating the wallet to add new investment products and integrate decentralized exchange services,” Liu said.
The team is focused on building a crypto wallet that acts more like an investment account. That means creating it with the ability to handle multiple types of investment products, starting with trade finance investment opportunities. Versara also wants the wallet to be able to leverage crypto collateral financing.
Users of Versara will be able to work with different blockchains, which makes it an accessible platform for more people. Rather than limiting users, Versara seeks to bring together the digital asset community and link them with traditional fiat lenders.
Versara’s projects plans
However, Versara is not stopping with a new wallet. Rather, the company has plans to continue its efforts to change the cryptocurrency space in two major ways. The first is to build a secure and easy to use crypto wallet. While the second focus for the company is to utilize the team’s background in banking and trade finance to become the world’s first trade finance platform.
For the company, this includes using cryptocurrencies in a creative way within the traditional banking and financing models. In particular, the company seeks to offer crypto collateral for invoice financing to help small to medium size enterprises. These are the businesses that often struggle with issues of funding and finance, according to Versara’s research.
The team foresees a future where crypto will be used as additional collateral that can be used to secure other types of financing, such as home and vehicle loans. Those at Versara believe that tokens offer immediate transparency and offer a decentralized record of lending, profits and losses that occur at financial institutions. This provides a trusted record that can be accessed and reviewed in real time rather than on a quarterly basis.
Benefits of Versara’s Platform
Based on the accumulated research by its team, Versara sought to design the first of its kind solution that overcomes the gaps in trade finance availability.
While about 80 percent of global trade is supported by financing or credit, there are some businesses that are not able to get the money they need. This availability gap is estimated to be about $1.5 trillion USD and it is the small to medium size enterprises who suffer the most.
The company believes there is a solution to the problem in fintech. Therefore, they have developed a unique trade financing platform that uses blockchain technology. It allows for use of cryptocurrency as extra collateral against potential invoice default. This security provides peace of mind to traditional lenders who can, in turn, provide loan funding for the enterprise.
The Versara wallet is just the first in a series of products the company plans to release that will transform the finance industry by utilizing blockchain technology.
Versara expects to launch the main platform in the US in the first quarter of 2019 and in Asia in the second quarter, with a European launch expected in the third quarter of the year. With investments from three publicly traded companies, Hexindai (NASDAQ: HX), Dianniu Finance (NASDAQ: DNJR), and China Lending Corp (NASDAQ: CLDC), Versara is also looking to enter the Chinese marketplace.