We've been mostly talking about counter party free bonds and counter party stocks, but we could also offer some interesting other products using UIA's.
Of course these are only as interesting as the trustworthy ability to pay interest by serious institutions and startups, but you could offer CD's and annuity bonds backed by quality UIA's.
The issuer sells a transferrable bond denominated in their UIA which locks up the principle + interest in one of two ways:
Certificate of Deposit (CD) which pays interest and principle at the end of its term (90 days, 1 year, 10 years...)
Annuity Bond (AB) which pays interest and principle as a series of periodic payments as an income stream.
In other words, instead of institutions lending money to unaccountable consumers,
we have consumers lending money to accountable institutions.
Now we just need issuers who can convince buyers they are a good risk over that period of time...
This might be called "crowd lending"
We've been mostly talking about counter party free bonds and counter party stocks, but we could also offer some interesting other products using UIA's.
Of course these are only as interesting as the trustworthy ability to pay interest by serious institutions and startups, but you could offer CD's and annuity bonds backed by quality UIA's.
The issuer sells a transferrable bond denominated in their UIA which locks up the principle + interest in one of two ways:
Certificate of Deposit (CD) which pays interest and principle at the end of its term (90 days, 1 year, 10 years...)
Annuity Bond (AB) which pays interest and principle as a series of periodic payments as an income stream.
In other words, instead of institutions lending money to unaccountable consumers,
we have consumers lending money to accountable institutions.
Now we just need issuers who can convince buyers they are a good risk over that period of time...
This might be called "crowd lending"
It's certainly doable and we've already seen some small examples of micro-lending on the BTS blockchain https://bitsharestalk.org/index.php/topic,20530.0.html
However like crowd-funding, large crowd-lending loans may have a negative short to medium term BTS price effect because the borrower would convert the large loaned amount into fiat/BTC creating significant BTS sell pressure which would only be returned slowly after varying periods.
We have decided to hold the fundraiser exclusively in BTC, there won't be a BTS or bitAsset option. The reasons are that the liquidity between BTS and BTC is so low that selling 130k USD worth opf BTS into BTC to cash out into fiat would according to our calculations move the market simply too much.
BitSapphire cited liquidity, but when they talk about moving the market they mean they would significantly reduce the short term value of BTS if they crowdfunded in BTS & then converted it to BTC/Fiat for their needs.
So as most loans result in the principal leaving BTS over a short period into a fairly illiquid BTS/Crypto market, thus creating BTS sell pressure and even potentially decreasing BTS value by more than the loan amount. I don't think I'd see a lot of value in promoting them in the short to medium term personally.
(This could be a potential market with a BTC sidechain though as funds raised in BTC wouldn't have an impact.)