Lending

BlockFi Announces Interim Crypto Distributions via Coinbase

Thursday. July 18 at 10:30 PM

1 min. read

Struggling crypto lender BlockFi has revealed plans to initiate its initial interim crypto distributions through Coinbase this month. This strategic move is part of a collaboration with Coinbase to streamline and expedite the distribution process. BlockFi outlined in a recent post that the distributions are set to commence in July and will be executed in phases over the upcoming months. Eligible customers will receive notifications through their registered BlockFi email addresses. It is crucial for clients to ensure their email details are current to avoid any delays in receiving distribution updates. However, non-US clients are subject to restrictions due to regulatory constraints, preventing them from accessing funds presently. Following its bankruptcy filing after FTX's collapse, BlockFi is taking steps to refund digital assets to customers by April 28, 2024. The company recently settled a significant agreement with FTX and Alameda Research, marking progress in resolving outstanding claims and debts.

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Rising Demand for Digital Asset-Backed Lending

Tuesday. October 22 at 2:00 AM

Ledn, a crypto lender, reported a 225% increase in retail loans, totaling $506 million in loan transactions in Q3. Institutional clients received $437.7 million in loans, while retail clients saw a surge to $68.9 million. The rise in retail loans is attributed to the Celsius refinancing program, crypto ETF launches, and reduced market volatility. Ledn has processed $1.67 billion in loans this year, with $258.7 million for retail users and $1.41 billion for institutions. The growing demand for digital asset-backed lending is driven by tighter monetary policies, competition for funding, and market events like Bitcoin halving and Ethereum ETF introductions. Ledn's CIO noted a spike in institutional demand in July, possibly influenced by the SEC's approval of Ethereum ETFs. The market anticipates the US elections as a potential catalyst for Bitcoin's price surge.

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Exploring Opportunities in Commodity Trading

Tuesday. October 15 at 4:30 AM

Tether Holdings Ltd is considering providing loans to commodities trading firms to utilize its profits. The stablecoin issuer, Tether, has engaged in discussions with various commodity trading companies regarding USD-denominated lending opportunities. Additionally, Tether is exploring the potential of participating in mainstream commodities trading. Commodity traders heavily rely on credit for financing international shipments of commodities like oil and precious metals. Futures contracts, tied to cryptocurrency prices, are gaining popularity among traders. Tether reported record profits of $5.2 billion in the first half of 2024, reinvesting a portion in industries like sustainable energy and Bitcoin mining. Tether's CEO, Paolo Ardoino, mentioned that the company is in the early stages of exploring opportunities in commodities trading, without disclosing specific investment plans. The market capitalization of USDt is approximately $120 billion as of October 14.

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Bitcoin-Backed Lending Gains Traction Among Financial Institutions

Thursday. September 26 at 8:00 AM

Financial institutions are venturing into Bitcoin-backed lending as Bitcoin adoption increases among investment managers and fiat interest rates tighten. Ledn, a Bitcoin-backed lending platform, revealed to Cointelegraph on Sept. 25 that institutional investors are shifting their focus from ETFs to Bitcoin-backed lending. Ledn facilitated $1.16 billion in cryptocurrency loans in the first half of 2024, primarily for financial institutions, with lenders earning over 10% APR. The platform offers various cryptocurrency lending products with interest rates ranging from 11.4% to 13.4%. Bitcoin-backed loans, collateralized with BTC, are denominated in fiat currency, posing credit risk for borrowers. The BTC lending market, currently at $8.5 billion, is projected to reach $45 billion by 2030. Ledn faces competition from platforms like Arch and Salt, as well as traditional financial players like Cantor Fitzgerald entering the institutional BTC financing space. The market benefits from regulated US crypto custodians like Fireblocks, Coinbase Custody Trust, and Fidelity Digital Asset Services.

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Resumption of CEX.io Operations in the UK

Thursday. September 12 at 3:00 PM

CEX.io, a centralized cryptocurrency exchange, has recommenced operations in the United Kingdom after a temporary suspension in 2023. The platform paused its services to comply with the Financial Conduct Authority’s (FCA) new Regime of Financial Promotions policy. Rich Evans, the managing director at CEX.io, mentioned in a Cointelegraph Q&A that the exchange voluntarily halted operations for UK customers in October 2023. The UK regulatory landscape has been evolving, with new laws introduced to clarify crypto requirements and encourage registration of crypto firms. Despite the perceived strictness of the FCA's regulations, they aim to safeguard consumers and promote informed investment decisions. Other companies like Nexo, PayPal, and Bybit also made adjustments to comply with the FCA guidelines. This move aligns with the UK's efforts to establish a more stringent regulatory framework for crypto-related businesses.

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