Digital asset software company AlphaPoint today announced the launch of the AlphaPoint Yield Platform available for use by marketplace and wallet operators using the company’s technology. Exchange and brokerage operators will have the ability to manage borrowers, lenders, rates, and distributions all on one simple to use platform featuring automated and manual settings and detailed reporting. End-users who leverage the new offering will have the ability to earn a yield on their assets through lending and staking offerings after opting into the service.
Over the previous two years, lending solutions to earn on assets have emerged as the next wave of innovation in the cryptocurrency industry. Total loan origination in cryptocurrencies from leading institutions has exceeded $10 billion and is one of the fastest-growing sectors in the space. A leading centralized cryptocurrency lender saw their outstanding loan book double in Q2 this year as compared to Q1, rising to a sizable $1.4 billion, with new loan originations increasing by more than 300% YoY. This growth is widespread across centralized crypto lending providers.
Furthermore, Decentralized Finance (DeFi) lending has become substantially more popular with active debt increasing almost 10,000% from $22.4 million worth of DeFi loans in Q1 2019 to over $2.3 billion in debt currently outstanding in Q4, 2020. In September 2020 alone, $3 billion of loans have been originated, more than 100x increase from the January 2019 baseline.
The AlphaPoint Yield Platform adds additional functionality to enable its customers to offer their own Yield products to end-users. This solution can be used stand-alone or on top of the company’s white-label products including Exchange, Brokerage, eOTC, Asset Issuance, Wallet, and Liquidity offerings. Properly regulated operators can now offer these solutions with streamlined integration with CeFi and DeFi.
“AlphaPoint customers have served over a million end users, enabling both retail and institutional access to digital assets globally. With this technology upgrade they can now offer attractive yield generating products to provide a fuller suite of financial services to their end-users,” said AlphaPoint Co-founder and CEO Igor Telyatnikov. “Global operators can now deliver a one-stop-shop for trading, liquidity, custody, and yield in their respective markets.”
AlphaPoint Yield Platform features include:
- Customizable front-end experience for end-users
- Daily, weekly, monthly, and custom payout options
- Manual or automatic payment distribution
- Adjustable integrated operator commissions
- Advanced management & reporting dashboard
Multiple AlphaPoint customers are taking steps to roll out product offerings leveraging this new technology, including Bitazza, a brokerage platform in Thailand, Coinext, a leading digital asset exchange in Brazil, Cryptosx, a fully licensed STO issuance & secondary trading platform, and NDAX, a Canadian exchange fully-integrated into the country’s national banking system.
“Asset yield optimization will be the norm for DeFi / CeFi platforms, and Bitazza intends to be at the forefront of the global standard,” remarked Kevin Heng, Co-founder of Bitazza.
“The Yield Platform will be a unique solution for the vast number of crypto holders who want to earn yield on their assets. We are excited to be one of the few crypto players in the world to provide this product to our end users”, says Jose Artur Ribeiro, Co-founder, and CEO of Coinext.
“Crypto lending and yield optimization fit naturally into the Cryptosx digital wealth management strategy. This is the natural evolution to increase adoption and migration into the digital asset space,” explained Philip Tam, Co-founder, and CEO of Cryptosx.
“NDAX has partnered up with AlphaPoint to bring another innovative product to the Canadian cryptocurrency space. Canadians will soon be able to earn interest or stake select coins that they hold on the NDAX platform while continuing to enjoy the regulated and secure benefits that NDAX has become known for,” said President & CEO of National Digital Asset Exchange Bilal Hammoud.
In addition to the lending of cryptocurrencies, staking offers investors another means to generate yield on their long-term crypto holdings. However, staking requires a deeper technical understanding and infrastructure than most retail investors can support. AlphaPoint customers will be able to manage staking themselves or work with partners like SMART VALOR to offer staking services and simplify the operation of staking nodes and transaction validation.
“SMART VALOR is one of the first exchanges to offer staking-as-a-service. Since October 2019, our clients enjoy yield on their long-term holdings, while we manage the technical complexity and security,” said SMART VALOR Co-Founder and COO Oliver Feldmeier. “I’m excited about the AlphaPoint Yield Platform and exploring how we can leverage it to make staking accessible to even more investors.”