As the financial landscape evolves, traditional loans give way to new models. One such model gaining traction is the Profit-Linked Return Loan, which ASX Limited is using to transform real estate investments.
What Are Profit-Linked Return Loans
Profit-linked return loans replace fixed interest with a share of profits. For lenders, this means variable returns dependent on project success, while borrowers enjoy the flexibility of non-fixed payments, fostering partnership.
How ASX Limited Is Using This Model
ASX Limited funds high-potential projects through profit-linked return loans. Loans are given based on potential profitability, and ASX earns through 'Profit-Linked Interest.' ASX NFT holders benefit by receiving tokens tied to project profits.
Unique Features of This Strategy
ASX’s approach offers significant advantages: unlike capped returns in traditional loans, there's potential for higher profits, aligned borrower-lender interests, and growth flexibility without fixed repayments.
ASX Limited’s adoption of profit-linked return loans marks a move towards smarter investing, seamlessly connecting real-world profits to token holders supported by blockchain technology.
