As of October 10th 2019, Blockchain Credit Partners has joined Goren Holm Ventures’ portfolio. Blockchain Credit Partners aims to leverage the advantages of blockchain technology to offer tokenized private credit— something the security token space has yet to see.
Tokenized Private Credit Explained
Goren Holm Ventures is a fintech fund focused on accelerating early-stage blockchain startups.
Today, the company announced that Blockchain Credit Partners (BCP) has joined its portfolio of companies.
BCP tokenizes asset-backed debt by providing high-yield cash flow payments through lending against secured assets. The startup claims to be a market first, since a high-yield private credit offering has yet to be seen.
More specifically, BCP is leveraging the benefits of blockchain technology to record the ownership of high-yield secured pools of auto loans which generate monthly cash flow.
Alon Goren, co-founder of Goren Holm Ventures, discussed the emergence of high-yield debt in the security token space:
“I think Blockchain Credit Partners is a great example of something new and exciting in the blockchain and security token space, I think tokenized high yield debt is one of the killer apps for blockchain as everyone is looking for high yield cash flow payments. The fact that BCP provides double-digit yield secured by autos we find very exciting.”
Historically, high-yield private credit has been confined to wealthy investors with a high net worth and hedge fund investors. Yet through security tokens, BCP plans to make this investment available to a much broader class of investors.
BCP founder Gregory Keough discussed the initial interest already seen by his firm:
“We are delighted to be working with GHV. BCP has gotten a great response from investors as with the ever-declining global interest rate environment, the ability to generate high yield cash flows secured by hard assets is something that is extremely attractive globally.”
BCP now joins a number of well-known advisors and partners of the Goren Holm Ventures network, including Securitize, The Institute for Blockchain Innovation (IBI), and Professor Stephen McKeon of the University of Oregon.
What do you think of BCP and its high-yield private credit offering? Let us know what you think in the comments section below.
Image courtesy of BCP.