LendingRobot, a Seattle-based robo-advisor for Alternative Lending, has launched the LendingRobot Series that uses blockchain technology for investment records.
The series will create a secure, immutable ledger of all investor and investment activities and gives investors, the peace of mind in the veracity of the investment data. The series is a one-stop solution that combines cloud-based investment automation, fully transparent fund secured by blockchain and sophisticated machine learning algorithms to offer predictable returns that are uncorrelated to the stock market, the release stated.
“Alternative lending proved to return excellent performance and with new origination platforms growing quickly comes the opportunity to diversify further. But fragmentation makes investing even more complex for individual investors,” Emmanuel Marot, CEO of LendingRobot, said.
Each series holdings, including loan details and payments, are input weekly into a secure and immutable ledger and notarized by the Ethereum blockchain. This will allow investors to view the investments that are held in any series and track the past performance of the fund. Investors can also be sure that all the investment data are sure and accurate.
The company stated that the use of blockchain technology would lower the fees as compared to traditional hedge funds. The management fees are a flat 1% per year, with no performance fees, entry fees or exit fees. The fund expenses are capped at 0.59%.
The LendingRobot Series will initially be limited only to 99 clients.
