Lending

BlockFi Successfully Sells FTX Claims in Bankruptcy Process

Thursday. July 25 at 3:00 AM

1 min. read

Crypto lending company BlockFi, which declared bankruptcy in 2022 due to the collapse of crypto exchange FTX, announced the sale of its FTX claims on Monday. This sale is a significant step towards finalizing BlockFi's bankruptcy proceedings and ensuring a full distribution of funds to creditors. The sale of FTX claims was completed at a premium to their face value, aiming to provide a 100% near-term distribution to all allowed customers and unsecured creditors. The plan administrator, Mohsin Y. Meghji, reported the successful transaction to the US Bankruptcy Court, monetizing all claims against FTX. This outcome exceeded expectations and was made possible through collaborative efforts. BlockFi settled with FTX in March 2024, receiving $874.5 million in claims. The sale of FTX claims at a high level was determined feasible in June, resulting in substantial value for BlockFi and its creditors. Despite progress, some customers remain cautious about fund deposits.

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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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