Blockchain-based lending platform Soil says it’s ready for prime time after achieving compliance with Estonia’s local financial markets regulator.
The startup has created a decentralized finance protocol that aims to bridge the gap between borrowers such as businesses and private debt foundations, and stablecoin holders who wish to lend their capital to earn yield. The protocol hosts a debt marketplace through which borrowers can obtain financing using tokenized collateral. Lenders, who pledge capital to Soil’s marketplace, will earn a highly competitive yield on their stablecoins, Soil says. The protocol’s revenue is derived from fees earned for connecting borrowers to lenders.
Soil said its platform’s compliance with Estonian regulations is a key step for the company as it confirms the validity of its business model. According to Soil Chief Executive Jakub Bojan, the company hired teams of lawyers from multiple jurisdictions to ensure its protocol would be validated by local regulators.
“Despite this great success, we continue to work and do our best to ensure that our project is at the forefront of the cryptocurrency market and is transparent and safe for our partners and investors around the world,” Bojan added.
Soil explained that the security and compliance of its platform is a major priority for the company, as it seeks to position itself for the EU’s upcoming MICA regulation, which aims to protect consumers from the risks associated with investing in digital assets. The new legislation ensures that crypto asset service providers respect strong requirements to protect user’s wallets, and have certain liabilities in cases where customer’s assets are lost. The legislation also covers aspects such as market manipulation and insider dealing.
Soil said the solid legal support, along with its innovative business model, means that it’s well positioned to inspire greater confidence in the DeFi ecosystem among investors.
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