Blockchain
Enigma Spins Off New Lending Platform To Help Small Businesses Get Loans
Enigma, a data science company that provides comprehensive intelligence about the financial health and identity of more than 30 million U.S. businesses, announces the spin-off of Prime, a lending platform that will make it easier for financial institutions to extend loans to small and medium businesses (SMB).
More than 50% of small businesses do not have sufficient access to financing, according to a recent Federal Reserve Survey, and the pandemic has introduced even more challenges for small business owners. Small business lending is often limited by the inability of financial institutions to assess the risk of extending credit to a given business.
Community and regional banks have especially faced challenges providing financing to the small businesses in their communities due to limited resources and a lack of reliable data about business health. Although these banks have strong relationships in their local economies, the high cost of originating and servicing small business loans has caused them to struggle to compete with large financial institutions.
Prime will broaden access to advanced data analytics, risk modeling, and capital markets to smaller financial institutions like community banks, as well as more established lenders. This will ultimately lower the cost of capital for small businesses, as more banks will be able to efficiently originate, monitor, and securitize small business loans.
Prime’s dashboard will allow banks to upload loan books and see advanced indicators like Enigma’s data on business revenue and growth, in order to make risk and lending decisions more efficiently and confidently. With Prime, small banks will be able to gain improved insights into their SMB credit portfolios and will finally be able to syndicate, swap, and securitize exposures.
Enigma is partnering with leaders in the small business financing space, including Capital One, Third Point Ventures, Customers Bank, and NEA to launch Prime with a funding commitment of $49 million. Prime, which will begin serving the market in the second half of 2022, will provide new loan opportunities for lenders while opening up a new financing channel for small businesses.
Prime’s lending solutions will be powered by Enigma’s proprietary SMB identity and financial health data, covering more than 30 million U.S. businesses. Enigma’s data provides unique visibility into the monthly revenues, growth, and detailed firmographics of a small business.
Prime’s launch partners provide a range of deep experience with SMB lending.
Capital One, a current Enigma client and investor through Capital One Ventures, has seen firsthand how better data about small businesses leads to growth. Capital One brings unparalleled expertise in the small business ecosystem, acquired by listening to and learning from the millions of businesses they serve every day. Capital One is committed to supporting all businesses, from budding entrepreneurs and growth-stage companies to more established, high-revenue enterprises.
Third Point Ventures, an investor in Enigma and one of the early investors in the revolutionary consumer lending platforms Upstart and SoFi, will bring expertise in developing securitization programs to Prime. While over 10% of consumer loans per year are securitized, less than 1% of small business loans are securitized, limiting capital liquidity and financing availability.
Customers Bank is a digital-forward top 100 bank in the nation with nearly $20 billion in assets that used technology to participate in approximately 347,000 Paycheck Protection Program loans with an aggregate value of $10 billion through the COVID-19 Pandemic, and recently launched a blockchain-based real-time payments platform for cryptocurrency and digital asset institutions.
NEA is a leading global venture capital firm and early investor in Enigma. NEA has partnered with founders on initial go-to-market strategy for many successful platforms like Jet.com and Coursera.
“Building on our success in digital consumer lending, bringing digital lending to the SMB market is a logical and important strategic priority,” said Customers Bank President & CEO Sam Sidhu. “We are excited to be a co-creator of Prime using insightful data to craft and shape products and services to the specific requirements of each current and prospective borrower, depositor, and specialty financing customer as we help them take on tomorrow.”
Enigma CEO Hicham Oudghiri will be acting as executive chairman and interim CEO of Prime during the transition period. The new leadership team will be in place by the first half of 2022. “We are excited about what the months ahead will look like, knowing Prime’s mission is to unlock growth and lending for all kinds of communities,” said Oudghiri.
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Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution
Blockchain
Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.
Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.
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