TL;DR
Sticking with one of the bigger narratives in the crypto space, it’s time to discuss Goldfinch’s collateral-free crypto lending protocol. With the market beginning to cool off, many projects have been reset to their previous positions. As one of the first successful implementations of RWAs “Learn about RWA NFTs”, Goldfinch has maintained a basic level of relevance throughout its journey. But, with the tides turning in favor of RWAs playing a major role in the tokenization of everything. Now is a great time to see what Goldfinch is up to and if it’s ready to handle the storm that’s coming.
As an originator, Goldfinch is in the perfect position to benefit from this expected influx of institutional users. I use that term specifically because unfortunately US Citizens trying to access Goldfinch are unable to.
That’s because Goldfinch is a product designed only for accredited investors and businesses with the proper credentials. While that may seem like a bad thing, keep in mind that to markets like Mexico, Nigeria, and Southeast Asia, Goldfinch’s ability to provide crypto loans without requiring collateral is a godsend.
What is Goldfinch?
Having been in the market for a few years now, Goldfinch started as an idea incubated by two former Coinbase employees who wanted to offer new capital options to underserved and unbanked regions.
Venturing on their own, the team was able to raise almost $40 Million since 2021 to see their dreams come to fruition.
Naturally, because of their positions at Coinbase, this allowed the project to raise funds from some of the most prominent investment arms in the space, including Coinbase Ventures, Coinbase Inc, Andreessen Horowitz’s a16z crypto, and the Orange DAO.
The concept for Goldfinch is fairly simple. Allow users to access on-chain funds using off-chain or zero collateral.
This method ensures that those who already hold reserves can keep this money safely where it is, in exchange for access to this new Decentralized Finance landscape.
Goldfinch achieves this through partnerships with lenders from around the world, providing lines of credit for businesses to acquire stablecoins and deploy this capital in their local markets for everyday business needs. A system built on credit and real-world reputation instead of on-chain holdings.
In its first year, which happened to be during the middle of a bear market, Goldfinch secured $40 Million in loans from more than 230k borrowers in 18 countries. With active loans doubling almost every month since the protocol’s launch. Since then the amount of GFI token holders and active loans for Goldfinch has more than doubled. Giving the project an average revenue stream of more than $100K every 30 days.
What Services Does Goldfinch Offer?
Goldfinch has a keep it simple stupid method of doing things. By cutting down on the noise and only focusing on what’s important. This allows the project to put its best foot forward and not overleverage its holdings.
The protocol works with the help of four core participants: Borrowers, Backers, Liquidity Providers, and Auditors. These groups come together in several ways to offer the following services on Goldfinch.
Raising Capital
As a lending protocol, one of the biggest reasons to access Goldfinch is to raise capital. To do this a user must…
Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin.
As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom.
“The swarm is headed towards us” -Satoshi Nakamoto
