Peer-to-Peer Lending Meets Liquid Gold


Investors who hold gold regard it as a safe haven. And when times get tough, they don't sell their gold, they pawn it.

Now a fintech company wants to revitalise pawnbroking by using cryptocurrency to create an international peer-to-peer network backed by gold.

Coin Telegraph reports on GoldMint, the brainchild of Dmitry Plushchevsky, a Russian citizen who has been working with a network of 140 Russian pawnshops since 2015.  The technology is intended to address four key challenges faced by pawnbrokers 

  • realization of unclaimed pledges
  • wired payments
  • funding of pawnshops via p2p lending
  • unified standards (consolidation)

If GoldMint can build a viable solution, the size of the pawnbroking industry means a share of the market is worth pursuing, says  Plushchevsky::

“In Russia alone, the portfolio of pawnshops (the collateral value of things in pawnshops) amounts to $1 bln and, naturally, in other countries it is not too small either: in Spain - $3 bln; in Great Britain - six bln pounds. This is a colossal amount!”

Is this a crazy idea?  It's definitely high risk, but we couldn't tell you how much riskier than putting your money into (say) a craft brewery. As we've said before, it's very important to understand hat it is you end up owning. A stream of revenue from a large peer-to-peer lending network sounds very appealing. But who will be GoldMint's paying customers? Who will own the intellectual property in the technology - the so-called CustodyBot?

 The fund-raising will be via an Initial Coin Offering (ICO) which introduces risks of its own.  To read a white paper, and have the chance to join a mailing list ahead of the offering, which is due to open on September 20th, go to https://goldmint.io/