Investment consulting firm Heron Finance has unveiled a new robo-advisor built on the Goldfinch protocol aimed at bringing more transparency compared to traditional finance.
In a press release on December 5, Heron Finance says the new product leverages blockchain technology to create a “global, interoperable ecosystem of loans from many independent lenders, all using the same decentralized infrastructure.”
Registered with the U.S. Securities and Exchange Commission (SEC), Heron Finance wants to offer individuals a simple way to diversify into private credit, providing multiple services like automated investment strategies as well as multiple risk-tiers. However, the robo-advisor will only be available to accredited investors.
“Our team has consistently led the way in taking a compliant approach to blockchain, including creating the first non-fungible token for compliance with know-your-customer requirements in 2021.”
Mike Sall, Co-Founder of Heron Finance
In an interview with Axios, Sall noted that with the new product, APY at the portfolio level is expected to be in the range of 11-16%. Those interested in using the robo-advisor would have to answer questions to evaluate their investment objectives and risk tolerance.
In early November 2023, SEC Chair Gary Gensler suggested that crypto operators tapping legal consultants could be doing so due to their supposedly unlawful securities offerings. Gensler particularly reiterated skepticism regarding crypto service providers and their lack of compliance with existing financial laws overseeing the world’s largest capital market.