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- IPv4.Global announces scheme to use IPv4 addresses as collateral
- It’s the “first-of-its-kind” loan system, and promises big returns
- The global transition to IPv6 is still slow for many
Marketplace IPv4.Global has revealed a “first-of-its-kind” loan system where businesses can lend using IPv4 addresses as collateral.
The company explains the system is built on previous work developed by Cogent, which offers notes backed by leased IPv4 address revenues which are collateralized by the addresses themselves.
Unlike Cogent’s model, though, IPv4.Global customers can use their addresses directly as collateral while still retaining full use of them.
IPv4 addresses are valid collateral
This means that businesses can secure funding while still having access to and use of their addresses.
“We just successfully implemented our lending program for a data center operator so they can grow their cloud business, making us the first and only company lending against IPv4 addresses today,” said Lee Howard, IPv4.Global SVP.
“IPv4.Global works with customers to buy, sell, lease, and now borrow against IPv4 blocks, regardless of size, and has completed more transfers globally than any other provider," the company added in an announcement.
The official release doesn't go in to much detail, so we don’t know if there are minimum or maximum IPv4 address requirements to qualify for a loan.
More broadly, IPv4.Global describes itself as a broker that transfers IP addresses from companies that no longer need them to ones that do, “monetizing hidden assets the company may not even be aware exist.” It’s brokered the sale of more than 55 million IP addresses and completed more than 3,000 transactions.
Despite IPv6 adoption, IPv4 remains high in demand because the costs associated with transitioning and infrastructure changes can be high.
Still, AWS started charging businesses for using IPv4 addresses in 2024 without adding a charge for IPv6 addresses in the hope that more customers would update.
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