Mintos is developing ETFs
European peer-to-peer lending platform Mintos is developing its own exchange traded funds (ETFs), after placing the project on hold following the Russian invasion of Ukraine.
Marcis Gogis, head of product at Mintos, has confirmed that the research and analysis phase has been finalised, including a concept for the technical solution and the design prototype. The product has already been tested with several Mintos investors.
“The offer itself is defined,” said Gogis. “Initially, this project was put on hold when the war began in Ukraine, but we’ve now restarted it, and the development phase can begin. We’re looking forward to sharing more with investors as we move further through the process.”
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Mintos first mooted the idea of an ETF product in September 2021, after it won its investment license in Latvia.
However, the platform’s focus shifted in late February, when the Russian invasion of Ukraine threatened to affect some of the platform’s loans.
Writing in a blog on the company’s website, chief executive Martins Sulte explained that “although Russian lending companies aren’t going out of business, the restrictions imposed by the Russian Central Bank are still in place.
“Because of these restrictions, Russian lending companies are limited in how much they can transfer to investors on Mintos each month.
“We’ve been working tirelessly to recover these funds for investors, and recently, there have been positive developments with Revo receiving permission to transfer larger payments.”
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Sulte added that his biggest focus is on funds in recovery, and he told investors that he will continue to work with Russian lending companies to recover investor funds, while also working on new opportunities for investors.
Over the following months, Sulte added that “investors can expect even better diversification opportunities as we introduce new lending companies on Mintos.
“Plus, we’ll launch our licensed services in new markets across the EU so more investors can invest in loans in a regulated environment.
“As we enter the last quarter of the year, we’re excited to keep providing investors with a passive way of building long-term wealth.”
According to the platform’s latest quarterly statistics, Mintos’ average interest rate has continued to grow, reaching 12.4 per cent in September.
€3m (£2.62m) was earned in interest by investors last month, and a further €57.2m was invested in the platform’s loans. This brings the total amount invested to date to €8.3bn.
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