US fintech Modulus launches tech to enable lending and borrowing in digital asset exchanges
Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges, announced the launch of its crypto lending and borrowing technologies, which will be available to all clients of the company’s white label exchange solution by the end of the quarter. With this technology, exchanges will be able to offer traders an easy way to earn interest on their tokens by lending them to the exchange, which, in turn, lends the tokens to qualified borrowers.
“The implementation of these technologies into our solution will keep it on the cutting edge of exchange technology. We aim to give exchange operators all the tools they need to succeed. This creates yet another income stream available to them, and it will make them more competitive when soliciting trading clients,” said Modulus CEO Richard Gardner.
“In effect, this will allow exchanges to act almost like a bank for cryptocurrencies. Some traders will lend their tokens to the exchange in return for an interest payment, while other traders will come to the exchange for a loan,” explained Gardner.
“We’ve been working on this technology for the better part of the past year. When we launched it, we wanted our solution to be the most secure, technologically sound option on the market, and that’s what we believe we’ve created. Like all of our technologies, this latest upgrade is completely scalable. It will grow with you, regardless of how much traffic your exchange receives,” Gardner said.
“We don’t believe in getting clients to market quickly at the expense of long-term viability. That’s one of the biggest differentiators for Modulus. We don’t sell solutions that we know won’t be able to serve an exchange for the long-term, and we don’t offer substandard technology to make a quick sale. Our technology is built for the long haul, and we stand behind our products in an ongoing capacity. We believe that anything worth doing, is worth doing well — and this update will outperform anything on the market today. The technology is complete and is in its final beta testing. Select clients will begin to receive invitations to implement the technology in the coming weeks. Before the end of the quarter, it will become a standard offering,” Gardner explained.
“For traders, this development is quite exciting because it offers them a secure method to access their funds without liquidating their assets. A streamlined borrowing process against one’s crypto assets will help them immensely,” said Gardner.
Modulus has led the way on exchange innovation in the cryptocurrency industry for years. In 2018, the company launched a market surveillance and risk management solution, which targets abuse within cryptocurrency markets and helps exchange operators identify risks of money laundering.
“In some jurisdictions, this new technology will require regulatory approval, however, with Modulus, you’re never alone. We’ve been tracking compliance and regulatory requirements for the better part of the last decade, and we stand committed to helping you navigate through this process, ensuring compliance while maximizing the benefits of your digital assets,” said Gardner.
