Topic: Vena is Solving Problems That Notes Mortgage Could not Solve (Read 82 times)

Except real estate, vehicles and other physical objects, there is a very important kind of  collateral among common collateral, that is, financial assets. Financial assets as collateral are often dominated by notes, because their value generally does not fluctuate, and financial assets such as equity, as collateral, have to face the problem of fluctuations in their value, and thus cannot obtain large-scale development.

Due to its security and standardization, note mortgages occupy a very important position in the mortgage financing market. The note itself is difficult to falsify, even if it is fraudulent, it can be discerned. Therefore, we can see that note financing is known for its security in the market, so its interest rate is often lower than other types of borrowing. In addition, the notes are handled much simpler than the physical collateral, unlike the treatment of real estate, which lasts for half a year.


However, although note mortgages have many of these benefits, they are far from being a perfect collateral. Although the falsification of bills can be discerned, this discrimination is still too difficult for ordinary investors who know little about this. In most cases, it depends on the intermediation platform. On one hand, investors must get to know the level of risk control of the platform, make sure that fake notes are not taken into; on the other hand, it depends on the platform's own behavior, because the platform may create related financing notes for their own interests, or privately discount the notes, so that the notes lost mortgage effect.

It turns out that cases like that are happening. Some platforms make notes between two companies associated with them, such notes cannot be fulfilled at all; some platforms admit that they discount the collateral notes to obtain liquidity, and such discounted bills can no longer afford the loan. Even the banks have also reported cases of failing to distinguish between fake notes, with amount of hundreds of millions or even billions.

Therefore, we can see that although the note itself has been standardized and has high security, it has a certain threshold for the identification of ordinary investors, and the platform in the middle is easy to falsify, and there are obvious loopholes. It can be seen that it is necessary to improve the authenticity of the collateral, not only the nature of the collateral itself, but also the problem of the intermediation platform, and the problem of trust of the borrower and the investor to the third-party institution. Obviously it is what the blockchain technology is trying to solve.

As an alternative, we can also turn to cryptocurrency, like bitcoin, as collateral. If bitcoin is used as collateral, that will never be a fiction. No one can falsify and everyone can confirm it easily. No controversy or uncertain comes about. When dealing with the collateral, it also keeps easy.

So Vena is working on that. We build a platform where you can get a mortgage with your bitcoin as the collateral, or you can invest in a mortgage with bitcoin as the collateral. If you want to make use of your bitcoin without selling them, it is a good choice to regard bitcoin as collateral. If you want to invest in a reassuring mortgage, Vena may be your perfect channel.

Certainly, you may wonder, what will Vena do if the price of bitcoin, the collateral, decreases? We know it is normal for the price of cryptocurrency to fluctuate, so if the value of the collateral decreases to a particular level, let’s say, 150% of the loan amount, we will inform the borrower to supply new collateral in time, or the bitcoin (the amount equal to the capital and the current interest) will be compulsively transferred to the loaner.

So you will never worry about the fluctuation of the bitcoin price. The loan will be safe and convenient. Vena is now building such a network for capital financing, for both borrowers and investors.

Vena is going to start ICO in the following 1 or 2 weeks. If you are interested, you can follow us in Facebook, Twitter, Telegram, Instagram, Reddit, etc. just by searching ”Vena Network“.

(Our partner includes DigiFinex, KuCoin, tekrise, F’enhance, vipexc, etc. And the ICO will be held on Leek ICO and TOKENPLUS.)