Introducing Loanbase — Tokenized P2P Loans

4 min readMar 12, 2019


Loanbase — Tokenized P2P Debt Marketplace

Loanbase provides access to dharma — universal protocol for credit on the blockchain. Cryptocurrency investors aka HODL’ers can continue holding their favourite cryptocurrencies and release liquidity.

Marketplace Lending — Peer 2 Peer Loans:

In 2005, A new type of credit was born: Marketplace lending. The phenomenal growth of peer-to-peer lending was a direct result of the 2008 economic recession. Banks vacated the consumer and SMB lending space, which allowed fintech’s to capture the demand left by that gaping hole.

According to Morgan Stanley, the market for Global Marketplace Lending may reach $290bn. by 2020, with an expected Compound Annual Growth Rate of 51% from 2014 to 2020. This trend first kicked off over 10 years ago with a wave of peer-to-peer (P2P) lending companies such as ‘Prosper’ and ‘Lending Club’.

But despite over a decade of activity, one main stumbling block still remains to be resolved: Trusted Intermediaries

Current P2P companies are simply not true P2P because they require the use of intermediaries (such as issuing banks, trust accounts and other players and factors). These intermediaries lack transparency and are bound by their geographical borders.

P2P Loans 2.0 :

Blockchain, and especially the bitcoin blockchain, helped democratize and improve the performance, reliability and scalability of financial platforms with a stronger focus on security and decentralization.

This mere decade-old newly born decentralized digital money needs a layer of protocols to build an open financial infrastructure. Ethereum blockchain powered smart contract protocols are enabling a wave of financial services in a decentralized trustless manner. Dharma, 0X, Maker, dYdX are some of the protocols enabling these new open financial primitives.

The immutability property of the blockchain technology ensures that all transactions are open and auditable by design. In addition, decentralization ensures the validity, agreement and reliability of the information thus filling the most important gap in P2P lending: Need for Trusted Intermediaries. With blockchain technology and open protocols, we can expect barriers such as credit history, geographical boundaries, currency to soon become challenges of the past.

Why Tokenize P2P loans :

Lack of liquidity is one of the major issues lenders face while dealing with P2P loans, and they usually have to see through the period of the loan tenure. Tokenization will help create more buyers/sellers and a functioning secondary market for the sector leading to more liquidity.

The process of tokenization allows for fractionalization so that the lender can sell any portion and at any time. It will also make investing easier for the average investor. Tokenization reduces trading friction and transaction costs. It would also make fractional ownership simple and easier to execute.

Why Loanbase

Loanbase decentralized peer-to-peer lending marketplace connects borrowers and lenders through an easy and trusted platform, utilizing Smart Contract protocols like Dharma and Secured by Ethereum blockchain.

How does it work?

Checkout Loanbase at

If you have any questions:

For more information about Loanbase join the team at our Telegram group —

About Cognitochain:

Cognitochain Technologies Pvt Ltd. developed Loanbase — A Tokenized Peer to Peer Lending Marketplace powered by Dharma protocol and Ethereum blockchain. Read about Cognitochain’s vision here