BlockStream Corporation Has Announced Billion-Dollar Crypto Funds as Lending Market Rebounds
Blockstream Corporation Is Set To Launch Three New Funds On April 1, Focusing On Crypto-Backed Lending, As The Market Rebounds Following Previous Challenges.
| Key Takeaways: – BlockStream Corporation is launching three new funds on April 1, which includes two that concentrate on lending backed by cryptocurrency. – The crypto lending market is recovering, highlighted by Coinbase’s relaunching of Bitcoin-backed loans and an optimistic outlook regarding U.S. regulations. |
As reported by Bloomberg, BlockStream has secured a multibillion-dollar investment to support the launch of these three funds, including the two focused on crypto lending.
The move signals a renewed interest in crypto-backed lending, a practice that encountered challenges after the FTX collapse in late 2022.
The launch of the three funds is set for April 1, with two designed specifically for lending. BlockStream intends to begin accepting more external capital starting July 1.
The company had earlier announced its plans to launch the Blockstream Income Fund, designed to support Bitcoin-backed loans, along with the Blockstream Alpha Fund, which will enable crypto borrowing by using U.S. dollars as collateral. Additionally, Blockstream Yield Fund, which is the third offering, will employ hedge fund strategies.
BlockStream Corporation, co-founded by CEO Adam Back, is headquartered in Victoria, British Columbia, and has a global presence.
As a strong advocate for Bitcoin, Back has previously openly criticized President Trump’s proposed strategy for a crypto reserve, arguing that it could centralize Bitcoin in a way that contradicts its decentralized ethos.
Blockstream Corporation focuses on blockchain technology solutions aimed at enhance Bitcoin’s storage and transfer capabilities. The company has raised $621 million from investors such as Horizons Ventures, AXA Strategic Ventures, and Fulgur Ventures, as reported by Crypto-Fundraising.
The broader crypto lending industry has encountered substantial difficulties, especially following the FTX collapse, which played a role in the downfall of major lenders such as Genesis Global Capital and BlockFi.
Despite past setbacks, the crypto lending market is beginning to recover. In January, Coinbase reintroduced crypto-backed loans, enabling U.S. customers to borrow against their Bitcoin holdings.
The service, which is not offered in New York, leverages the DeFi protocol Morpho to facilitate lending. Borrowers can secure loans in USDC without having to interact directly with DeFi platforms, as Coinbase manages the entire process.
The evolving political environment in the U.S. could offer some relief. Former President Donald Trump’s favorable view on cryptocurrency has increased hopes for a friendlier regulatory environment.
The Securities and Exchange Commission (SEC) has recently recently scaled back legal actions against cryptocurrency firms such as Coinbase, Robinhood, Gemini, Uniswap Labs, Kraken, and Consensys.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
