ASMX is a blockchain based technology that allows the trading of assets across its advanced exchange. Two years in the making ASMX is aimed at bringing liquidity where liquidity didn’t previously exist, or where it did, increase that liquidity and make it more efficient.
Launched on the Ablrate.com P2P lending platform in October 2020 to trade the debt generated by lenders on Ablrate the company reported that over £850,000 has been traded since launch.
David Bradley-Ward, CEO of ASMX said “We are pleased with that, especially as we have been finessing the platform over the period with a number of updates. The good news is that liquidity has increased and spreads are beginning to get smaller and we are essentially trading as a premium market now, which shows the level of liquidity and the appetite for our loans.
After customer feedback ASMX rolled out enhanced filtering of assets along with changes to the way that order information is displayed. The most significant changes are yet to come, however.
Co-Founder Alex Benger said “Our goal is to bring professional liquidity tools to the market, if a market is liquid then the participants are the winners all around and this has been a massive focus for us. There are a few enhancements in information to be viewed etc which will be launched soon but what we are super excited about is the algorithmic trading bots that liquidity providers can utilize”.
ASMX had confirmed during testing that they had bots doing a lot of the loan testing with up to 1,000 concurrent trades settling with no fuss. “With this level of concurrency we are able to create trading bots for specific users that can essentially ‘make a market’ in our loans. Allowing third parties the opportunity to trade illiquid assets such as debt is a game changer in our opinion”. Benger added.
The focus is on the lender experience and efficiency. Bradley-Ward said “We firmly believe that lenders should have the ability to get better returns by investing directly, but we also realise that to better serve them we must be able to give them better tools for risk management. The biggest contributor to risk management in any investment is liquidity, that is why we have built ASMX, to create liquidity for the P2P markets and beyond”.
When asked about all the other platforms looking to tokenise assets Bradley-Ward said “There are lots and lots of ‘tokenization platforms’ that believe they will be the future of fractionalization. We must all remember, however, that fractionalisation of assets is nothing new, in the early 1600s the Dutch East India Company became the first company in history to issue bonds and shares of stock to the general public”
Ablrate have been fractionalizing loans for 6 years and originated nearly £60 million, while the old secondary market traded £47 million before being replaced by ASMX.
“Modern solutions for fractionalization shouldn’t require an understanding of the underlying tech, or some long winded way of holding assets in ‘cold storage’ or on the latest whiz bang hand held device or storage unit that the average investor is just not interested in”.
Bradley-Ward added, “With ASMX, you register on a regulated platform, you send your money, be it GBP, Euros or whatever, you buy assets, sell asset and have the money you make sent back to you at your request in your currency. We are all for the digital asset community, we are part of it! But you have to make it easy for users, that is what we have done and will continue to do going forward”