New Blockchain Platform, for Fintech, Known as Abra 1.0, Is Launching with an Investment Portfolio of Nearly 1 Million Euro
Vilnius-based fintech startup Debitum Network will launch its innovative platform that is using blockchain technology to connect global investors with small businesses seeking short-term loans. Currently, Debitum Network is an innovative hybrid ecosystem for small business financing. It’s an independent, transparent and decentralized alternative financing ecosystem which provides the opportunity for businesses to acquire capital and fulfill their needs for financing and growth using light technology via blockchain.
Fintech and Blockchain Community Influencers Impressed with Debitum Network
The platform, known as Abra 1.0, is launching with an investment portfolio of nearly 1 Million EUR. Its hybrid ecosystem bridges the gap between crypto and ‘real-world’ lending. Blockchain technology, by using the platform’s Ethereum-based DEB crypto token, delivers speed together with end-to-end integrity and transparency in the platform’s internal processes – while loans are delivered in traditional fiat currency.
The launch follows a period of rapid development after Debitum Network raised more than $17 Million in its initial coin offering (ICO) in March. Fintech and blockchain community influencers have praised the startup’s ability to deliver on its promise to launch within six months.
Eglė Nemeikštytė, CEO of Blockchain Center Vilnius, believes that speed, efficiency, and commitment Debitum has shown in bringing its product to market are good examples to other fintech startups.
Eglė Nemeikštytė said, “Debitum Network were the first in the Vilnius Blockchain Center community to show blockchain applicability in the fintech industry, and were the fastest to raise capital and launch their product. They proved that blockchain fintech projects can keep their promises, stick to deadlines and be efficient.”
Blockchain Technology to Help Investors Begin Deploying Their Money Straight Away
The company has said it is already at work on version 2.0 of the platform and is scheduled to roll its platform out in 15 countries by 2019.
With returns of 10-15% in an ecosystem that includes service providers such as risk assessors, insurance providers and debt collectors, Debitum Network provides an opportunity to invest in a more stable financial instrument at a time when crypto prices remain volatile. There are a number of key benefits for investors.
First of all, the platform is fast: after completing a brief authentication process, investors can begin deploying their money straight away.
It’s also flexible.
Loans delivered via Debitum Network mature in 2 to 6 months – significantly less than many traditional investment opportunities. Investors can choose to cover all or part of a borrower’s loan request, with individual investments starting from as little as 50 EUR, up to a maximum of 10 Million EUR.
The decentralized nature of blockchain technology, combined with the use of smart contracts, removes many of the bottlenecks that slow down traditional bank lending. As a result, Debitum Network can deliver short-term loans of between 10,000 EUR and 1 Million EUR in less than 24 hours – so investors’ money can get to work with the minimum delay.
Abra 1.0 received a positive reception from partners, early investors and key figures in the blockchain community at an event in Vilnius on August 23rd that provided a hands-on chance to try out its features. These include a central dashboard on which investors can track their investments, see how much money they have made, and view potential investment opportunities, ranked according to risk.
Blockchain technology, by using the platform’s Ethereum-based DEB crypto token, delivers speed together with end-to-end integrity and transparency in the platform’s internal processes – while loans are delivered in traditional fiat currency.
Speaking at the event, Debitum Network co-founder Martins Liberts expressed his confidence in the platform:
Martins Liberts added, “Debitum is about allowing small business owners and entrepreneurs to be in charge of their future. We’ve done it in around six months, and we’ve done a lot of testing. We have trust in our product, and we’ll be joining the ranks of those few ICO projects that have already delivered a real product.”
Lithuanian Vice Minister of Economy, Elijus Čivilis, also in attendance, stressed the importance of solutions like Debitum’s in tackling the global issue of access to finance among small businesses:
Elijus Čivilis added, “We had a goal to grow the startup economy, and companies like Debitum have global ambitions. Debitum network is offering what we were really lacking in the market. Somewhere you can quickly get financing or access to capital to run your business.”
Debitum Network joins a rapidly expanding market in alternative finance options for small business, many of whom find it difficult to secure the finance they need from conventional banks. Recent figures from the World Bank reveal that the problem is particularly acute along developing economies, where up to 70% of SMEs lack access to adequate finance. This makes projects like Debitum Network highly valuable and attractive, as these economies tend to provide the highest financial growth and return potential.