Income Locker (Inlock), which is a blockchain and smart-contract based cryptocurrency lending platform that lets licensed lenders to give loans to borrowers against cryptocurrency as collateral, has signed a Memorandum of Understanding with institutional lending provider and entered partnership with one of the Central and Eastern European Countries (CEE) region’s biggest crypto ATM manufacturers to test its Minimum Viable Product (MVP).
The CEE cryptocurrency ATM manufacturer will integrate Inlock's service into its crypto ATM machines to let users take out loans and receive funding in cash within hours. The manufacturer will act as a matching service forwarding customers to Inlock. CEO and founder of Inlock Csaba Csabai said there is a need to help people to be able to spend cryptocurrency before beginning to talk about its reaching mass adoption.
The platform uses ERC-20 compliant ILK token as a proper utility token for covering platform fees when customers are taking out fiat loans with cryptocurrency collateral. On it, lenders are able to offer loans with varied terms. Borrowers simply choose from most competitive offers from lenders without needing to sell their cryptocurrency to finance temporary liquidity problem. With the platform, holders of cryptocurrencies are able to take a loan in fiat and therefore manage short-term liquidity problems.
They can also unlock their purchasing power of Bitcoin and other digital currencies while retaining price at which they collateralized the cryptocurrencies. It lets users who cannot access regular bank loans, who make few bank transactions and lack a good credit score, to benefit from such products. Owners of digital currencies are also able to hold crypto for the long term if intending to invest in it for the long term, while still accessing the value of their digital assets. This helps to make crypto spendable to many users, though indirectly. Further, borrowers pay loan costs in ILK tokens and because it is not deducted from their collateral, it means they can preserve the full value of their crypto upon repaying the loan.
The company raised $2.5 million in a private presale earlier this year and then $700k in the first 24 hours during its September ICO. However, the token sale is still on-going.