LendingClub (NYSE: LC) is one of the pioneers in online peer to peer lending.
Shares of LendingClub have cratered recently, potentially hitting a floor, at around $4.00 per share, since their IPO a few years back.
After some major issues, the company has done a good job of continuing to reduce costs and improve the quality of their underwriting of loans. They have also built revenues with modest growth.
It seems plausible that LendingClub could further reduce costs, while increasing lending velocity, with their own token based asset system.
A LendingClub blockchain cryptocurrency could be linked to the value of hard, illiquid assets. Illiquid assets that are tokenized could become liquid, and lent to borrowers.
Third Parties Are Never Going Away
Quality third parties will always be around when they add value in transactions.
It is a fantasy to believe that third parties are going to go away… This is because third parties who do their job can be part of an excellent user experience.
Coinbase, which is a platform for trading cryptocurrencies, is an example of this. At the moment, trading Bitcoin, Ether or Litecoin is too complex for the average trader.
Coinbase solves this problem with the platform while also offering additional services that add value to the third party experience.
LendingClub can continue to improve its user experience, while increasing efficiencies. It could also add greater transparency while gaining access to more capital for lending, with a blockchain token based asset lending application. An example of this in practice today is LAToken.