The the tool will decrease lending risks for holders of digital currency and allow for the rollout of decentralized lending markets that can provide digital currency loans on an unsecured basis, the announcement stated. The tool will be the first to connect the gap between the spheres of DeFi and traditional finance by aggregating information from traditional credit scoring infrastructure into decentralized lending.
DeFi tools have spiked in popularity among those who are interested in digital currency in recent times, per the announcement.
In other news, Thailand’s central bank has arrived at the third step of its central bank digital currency (CBDC) formation and seeks to have greater use of the cryptocurrency by big companies, The Nation Thailand reported, citing a Bank of Thailand (BOT) official.
The bank will also start using the cryptocurrency for Hong Kong Monetary Authority transactions in September. As it stands, the BOT is putting the crypto to use for financial transactions with certain large companies.
While bitcoin is not backed by assets, the BOT’s cryptocurrency will be supported by assets like the international reserve of the nation.
On another note, a 20-something individual has been charged with wire fraud for allegedly bilking investors out of over $4.5 million in cryptocurrency, CoinDesk reported.
The Department of Justice contends that the individual, who allegedly informed investors that he was a digital currency trader, sought debt for an investment. During a period that spanned from 2017 to this year, the individual allegedly had investors move $3.5 million in ether, about $1.1 million in bitcoin and $30,000 in U.S. dollars.
Once the individual came into possession of the money, he allegedly transferred all or much of the funds to digital currency gambling sites. Just one investor has reportedly been completely paid back.