After nearly collapsing during the last crypto downturn, digital asset lending is making a comeback, with a new generation of lenders re-entering the market.
What Happened: Both traditional financial institutions and blockchain-native companies are reintroducing capital to meet the growing need for liquidity and leverage within the sector, Bloomberg reported.
Over the past month, several major players have unveiled new lending initiatives.
Cantor Fitzgerald has launched a Bitcoin lending business backed by $2 billion in capital, signaling Wall Street’s renewed interest.
At the same time, Blockstream has secured billions for its crypto lending funds, while Xapo Bank has begun issuing Bitcoin-collateralized loans of up to $1 million.
“We’re seeing larger institutions taking the lead this time around,” said David Mercer, CEO of LMAX Group. “More banks are gearing up to provide financing solutions for major institutions in the crypto space.”
The boom in crypto lending during the 2021 bull market saw firms like Genesis, BlockFi and Celsius offering unsecured loans to trading desks and hedge funds. …Full story available on Benzinga.com
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