LendingClub Corporation ( LC Quick Quote LC - Free Report) expanded the capabilities of its electronic trading platform, LCX, to include LCX Link. The addition will facilitate institutional investors to automatically buy, sell and settle loan transactions on the LCX platform without the need for technology infrastructure or the ability to establish connectivity.
LCX is an industry-unique platform that uses technology and leverages on LendingClub marketplace to make loans available for investors by matching their preferences and specific investment objectives. LCX also eliminates traditional manual processes by offering a digital platform. The technology allows for dynamic loan sale pricing and offers the ability to sell new loans above par. The innovation will increase access and make loan transactions seamless.
Earlier, LCX could be used through an API only but with the launch of LCX Link, banks and other institutional investors can easily access and purchase loans that satisfy their risk-return profile, irrespective of their in-house technology infrastructure.
Clarke Roberts, VP of Marketplace Services at LendingClub, remarked, “The efficiency we're enabling combined with our scale increases accessibility and enhances transparency for investors, which ultimately drives new and more competitive products for our members."
LendingClub anticipates executing $2 billion in total loan sales through LCX by the end of the ongoing quarter.
Moreover, the company expects to expand LCX in fourth-quarter 2021, aiming to aid client-to-client portfolio sales through its secondary market. It will provide a smooth way for investors to sell LendingClub loans to other investors on the platform, thereby, augmenting the liquidity of LendingClub's short-duration loans.
Management noted, "We continue to leverage technology to grow our marketplace, and LCX Link is a key capability that has helped bring in multiple investors who are pleased with the speed at which we're innovating to increase access to this asset class".
The stock has jumped 80.4% in the past three months compared with 1% growth of the
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