Port to change banking, Credora to fix crypto lending
Two companies have announced their ambitious plans to change critical aspects of lending and crypto-native banking.
British startup Harbor announced on Wednesday its launch of a new crypto-native banking platform. The new service claims to build a more seamless connection between TradFi services and crypto.
Harbor 1.0, which is slated for a summer rollout, will introduce a crypto-native checking account, allowing users to manage all their assets in a single app.
Harbour’s platform will also offer a USDC debit card and account, and the app will be compatible with Android and Apple devices. The platform also holds fiat and crypto assets in external insolvency accounts to ensure transparency and security. Harbor aims to eventually provide on-chain proof of assets, allowing users to independently verify balances.
Traditional banks are usually conservative with regards to cryptocurrencies. Recently, banks have placed restrictions on customers buying crypto. This reticence of traditional retailers opens the door for startups with innovative products and services.
Credora helps lenders
Credora has also announced a $6 million strategic funding round with major investors including S&P Global and Coinbase Ventures. The funding will go towards improving institutional rails for credit and enhancing Credora’s private computing technology.
Credora uses privacy-preserving zero-knowledge proof to refine lenders’ ability to assess credit risk in real time. It claims to solve a major problem in financial markets: information asymmetry.
In most scenarios, borrowers do not want to share important information. This makes it difficult for lenders to make good decisions about who to offer loans to. Zero-knowledge proof allows lenders to know more about counterparties without borrowers giving away too much information.
The financing round also included participation from several other investors with an interest in promoting financial innovation. Participants included Amber Group, CMT Digital, KuCoin Ventures, Pirata Capital, Breed VC, WAGMI Ventures and others.
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