CashOn Launches Hong Kong’s First Digital Currency Lending Platform, Valued at US$10 Million, Matching Borrowers with Financial Institutions for Fiat Currency Financing

Co-founders of CashOn: (Left to right) Johnnie Wong, Dr. Ivan Ng, Marvis Wong, Nova Hung and Jacky Tang

The global virtual asset lending market is burgeoning, with a leading digital asset lender processing a record US$690 million in loans in Q1 2024^[1]. Reports indicate that over 200 million people in Asia hold digital currencies^[2], and the digital asset lending loan book in ASEAN is growing annually by over 20%^[3]. Despite the Hong Kong government actively promoting the digital asset sector, local virtual asset trading platforms (VATPs) are not allowed to offer lending services. This gap in the market has prompted CashOn to develop an innovative solution.

Moreover, Traditional banks have yet to accept digital asset loans due to complex regulatory requirements. At the same time, small and medium-sized financial companies have also been reluctant to take on such loan requests due to the high thresholds of required expertise, technology, and licensing. In response, CashOn has built a brand-new digital currency lending matching platform that connects borrowers with licensed financial institutions, significantly simplifying the collateralized loan process and ensuring a more efficient allocation of assets.

The platform employs a KYC (Know Your Customer) module and chain analysis module, using AI and blockchain big data technologies to encrypt and store customer data. These technologies help assess potential borrowers' digital wallets and conduct virtual asset authenticity and anti-money laundering checks. Simultaneously, they connect potential borrowers with multiple licensed financial institutions, gathering loan offers secured by virtual assets. This simplifies compliance, provides in-depth credit analysis, and reduces risks associated with virtual assets.

Smart Contracts for Enhanced Transparency and Security

CashOn utilizes smart contracts, including core contracts for escrow, repayment, and margin, to ensure the management of collateralized assets, monitoring repayment progress, and the collection and liquidation of margins. These contractual terms will be executed without the need for intermediaries, increasing the transparency of loan contracts, building trust between parties, and reducing the risk of misunderstandings or disputes. The platform also adopts the strictest security measures, such as encryption technology and multi-layer authentication, and collaborates with renowned security institutions to protect the financial transaction security of its customers.

Compared to traditional lending methods, CashOn accelerates the application and disbursement process for virtual asset loans, simplifies loan management, and enables customers to flexibly manage their assets and pursue strategic investments or appreciation opportunities. The platform guarantees that customers' borrowing and repayment amounts will remain unaffected by changes in the value of the underlying currencies. Furthermore, it maintains a diverse suite of lending services designed to address customers' varying financial requirements.

Market validation with Licensed Lending Companies

Marvis Wong, Co-founder and CEO of CashOn, stated, "The Hong Kong government's comprehensive regulatory framework and business-friendly environment for the digital economy have driven the development of fintech, opening up new opportunities for the traditional financial industry. I believe CashOn will establish a foothold in the ASEAN and Hong Kong markets within the next three years, solidifying its unique market position."

CashOn has conducted preliminary discussions with 100 licensed lending companies and signed a MoU with over 50 companies to accept virtual assets as loan collateral. Johnnie Wong, Co-founder and Chief Operating Officer of CashOn, noted, "Recently, The persistent economic slowdown in Hong Kong has impacted the profitability of financial institutions. CashOn helps them explore new business areas. By actively collaborating with more financial institutions, we are jointly driving the innovation for the credit industry."

Future Expansion with Innovative Solutions in ASEAN

Dr. Ivan Ng, Co-founder and Chief Financial Officer of CashOn, emphasized, "The benefits of the digital economy have already surpassed the traditional economy. We have received recommendations from multiple valuation firms, with preliminary estimates suggesting that CashOn's market value can reach at least $10 million. With the rapid development of the digital economy market and CashOn's efforts in the industry, we believe our market value will experience rapid and significant growth." Jacky Tang, Head of Web3 and AI of CashOn, Stated, "Safeguarding fund flows is an important component of the platform. CashOn adopts the escrow smart contract in blockchain to ensure the best protection for customer data and virtual assets. The transaction characteristics of digital currencies, which are fast and without geographic restrictions, are particularly suitable for collateralized lending and significantly reduce the application time for traditional lending."

Looking ahead, CashOn plans to expand into the ASEAN with innovative Web3 e-payment solutions. These solutions will offer more financial service options for merchants and virtual asset holders. Nova Hung, Chief Marketing Officer of CashOn, commented, "CashOn offers a user-friendly and intuitive interface, enabling digital currency investors to access cash liquidity easily. Leveraging the global nature of digital currencies, CashOn aims to facilitate the development of the cross-border digital economy. Through innovative brand promotion and strategic partnerships to enhance its market influence."

https://www.cashonnet.io^[2]

Hashtag: #CashOn

The issuer is solely responsible for the content of this announcement.

References

1. ^{^} Media OutReach Newswire (www.media-outreach.com)
2. ^{^} https://www.cashonnet.io (www.cashonnet.io)