Ledgermark Ltd develops, markets and issues distributed ledger technology, specifically; various forms and implementations of distributed ledgers that can be used in combination with technologies like Bitcoin.
The company is launching a new digital asset; Meridian (MDN). Meridian represents a fork in the road as it is different from traditional digital assets. Instead of being positioned as a bitcoin alternative, Meridian is being designed to be used in combination with bitcoin. In short, via their Bitcoin Loans Platform, Ledgermark Ltd will be accepting Meridian tokens as collateral for bitcoin loans of higher value.
Richard Ochieze, Founder and Director of Ledgermark, has been working in this space since 2013.
He says: “We would like to boost disintermediation in the online loans marketplace. If we can bring the peer to peer loans industry into the age of the blockchain this will be a huge positive.”
Peer-to-peer lending platforms are already providing a venue for borrowers and lenders to meet up and conduct business – but the loans delivered on the current crop of peer-to-peer lending platforms are unsecured. This exposes lenders and investors to unnecessary risk. Simply, when borrowers fail to repay unsecured loans, lenders lose their investment and are left with no options of recourse.
Richard Ochieze says: “Meridian is an easily liquidable asset that can be easily transferred from person to person – regardless of geographical location.”
He continues: “an eco-system of borrowers and lenders should allow all parties involved to draw equal benefits.”
At a time when many people are disallowed entry into the world of leveraged finance, adding an easily liquidable asset to the equation opens up the door to allow the world’s unbanked population access to financial leverage.
Why Digital Collateral?
How does an entrepreneur based in Singapore prove his credit worthiness when attempting to procure a loan from an individual based in Germany – and vice versa?
In the absence of credit history, the simple answer would be to provide some form of collateral to secure the loan. But then how does one pledge his house or farm as collateral, via the internet, to secure a loan that is being offered by a person who is based in another country?
This is the problem that Meridian proposes to address. Richard Ochieze explains: “We want to bring the international loans market into the digital age in a way that opens things up for individuals based in the most far-flung corners of the world and allows them easy access to loans.”
You wouldn’t pledge your house or farm as collateral to secure a loan below the value of a thousand dollars – as such, loans in this range of value have historically been unsecured. However, the internet makes non repayment of loans a marvellously simple task for borrowers and as such; organisations such as the Funding Circle have been left wide open to have the profits of their retail investors depleted.
Some Funding Circle lenders have reported enduring harsh losses after using the platform. 
This suggests that the internet is no place to offer unsecured loans, regardless of how low the value of the loan is.
The answer then is to introduce an asset that is easily liquidable, easily transferable and easily convertible via the internet – and then to use this asset as a form of digital collateral.
Prior to the invention of the Blockchain such an asset didn’t exist and now that it does, the door has been opened to allow individuals based anywhere in the world to distribute and/or become the recipient of a secured micro-loan.
So instead of turning potential borrowers away who aren’t able to provide verifiable credit history and/or to pledge physical collateral – borrowers who fall into this category can now be catered to which will ultimately expand the size of the online loans marketplace.
Service Based Digital Assets – The new frontier
Tying a digital asset to a service creates an environment in which it is impossible for a user to interact with the service being offered, without first being in possession of the specified digital asset.
Such an environment breads the development of natural behavioural transactions that will create a continuous flow of transactions both on alternative currency exchanges, and on the Meridian blockchain.
These transactions will be made by borrowers who wish to procure a bitcoin loan for themselves, and digital asset investors who will wish to take advantage of the resulting movements in the Meridian to Bitcoin exchange rate.
Richard explains: “Meridians link to our bitcoin loans service is not just one that is suggested or implied, it is one that we want to build in to the Meridian infrastructure in an inseparable way.”
He continues: “The Meridian Proposal is not one of grandeur and excess. We don’t have a huge list of futuristic applications that we are pledging to spawn into existence. But there is one simple and specific service that we want to deliver extraordinarily well; the distribution of Bitcoin loans.”
Ledgermark Ltd is pledging to take a step forward from purely speculative digital assets, to add a new dimension of utility to the equation.
The UserBase is king
Many have presented the argument that the only thing that can be done with an altcoin is to sell it for bitcoin. As such, once the speculative value of a particular alternative currency begins to wane, its user base deteriorates at a fast rate.
To combat this, digital asset developers should lend more of their energy toward creating practical and beneficial use cases for digital assets. This will create an environment in which digital assets have an actual use case outside of price speculation alone – this will lead to the development of natural price cycles that can be analysed, determined and/or pre-determined. For example, in the United States, the price of wheat is quoted in US Dollars. When the US Dollar weakens in value against the Euro, observers notice that US Wheat exports into European nations rise sharply. This is because a weakened US Dollar decreases the cost of and increases the demand for US commodities and services abroad.
In similar fashion a weakening in the price of Meridian will create an environment for cheap Bitcoin loans – allowing users to obtain Meridian tokens cheaply and then use these tokens as collateral to secure a Bitcoin loan of higher value. However, after noting that weaker prices in the Meridian market will encourage buying – it is important to also note that increased buying of an asset causes higher prices. As such, a climate is established in which the holders of Meridian tokens who are not seeking Bitcoin loans are also able to draw benefits.
This economic behaviour can be observed, quantified and expanded into various forms of strategy – since there are reasons other than price speculation that cause individuals to become regular purchasers of Meridian tokens. Richard comments: “Similar to the present day fiat currency system, current trends suggest that digital assets and currencies will eventually form an ecosystem in which all participants are able to draw mutual benefits.”
Meridian. The fork in the road.
The Meridian service offers rewards and incentives to borrowers who consistently complete their repayments. Using the blockchain, Meridian also compiles a history of such repayments thereby creating a digital account of credit history for each borrower. In short, users are able to pledge Meridian tokens as digital collateral in return for a bitcoin loan of higher value – up to a maximum of one Bitcoin. Users that complete subsequent repayments are re-granted access to their Meridian tokens and rewarded with a boost in credit rating, which gains them wider access to loans in the future.
To join the Meridian ICO, you are invited to visit http://myMDN.io where you can register to participate in the Meridian Crowdsale that will take place on 12 October 2017.
Investors can buy MDN tokens during the pre-sale on 12 October 2017, and then trade them on all alternative currency exchanges.
Meridian PR Team