How does it work?
ILP structure issues Future Loan Access Tokens (FLAT), which are a form of “access tokens”, so creditors can transfer their loan agreements to others. Tokens will be issued to the creditors who lend funds to the company. Each company using Tokenote ILP structure can brand their tokens as they wish.
Tokenote ILP structure, developed by blockhive, is based on cryptocurrencies. The creditors lend in cryptocurrencies and receive FLAT tokens. Tokenote can support cryptocurrencies including Ethereum.
User identification and verification are a critical function to prevent fraud and anti-money laundering. Such procedures, or Know Your Customer (KYC), need to be completed before loan agreements can be digitally signed. Agrello ID, a digital identity and signature solution, provides the support necessary for Tokenote’s ILP system.
Each creditor has to sign a loan agreement, before receiving FLAT tokens. Tokenote’s ILP system uses Agrello smart contracts that can be digitally signed using the Agrello ID. Each contract is recorded on the blockchain.