Transforming P2P lending with blockchains

Peer 2Peer (P2P) lending in 2024 is expected to be worth over $510billion and estimated to grow to be worth over $1.7trillion by 2034. P2P lending platforms serve as online marketplaces where individuals or businesses can obtain loans from other individuals without going through a financial institution. These platforms typically allow lenders to earn interest on their funds whilst borrowers benefit from lower interest rates than those offered by traditional banks. P2P lending also provides access to credit for those underserved populations who may not qualify for traditional loans. By eliminating intermediaries, P2P platforms typically can offer lower fees and better interest rates for both borrowers and lenders. According to iwoca: “Peer-to-peer loan sizes tend to be the same as small business loan sizes - between £5,000 and £500,000”, whereby demonstrating that lenders have the ability to diversify their portfolios by funding multiple small loans instead of one large loan.

However, d…