Bitcoin development firm Blockstream is making significant strides in the cryptocurrency space with the launch of three investment funds, including two that focus on crypto lending, as announced on Tuesday.
Co-founded by the notable Bitcoin developer Adam Back, Blockstream is set to introduce a fund that will underwrite Bitcoin-backed loans, alongside another fund that enables crypto borrowing with U.S. dollars as collateral. A third fund is planned to deploy hedge fund strategies, according to a recent tweet from the company.
Sources cited by Bloomberg indicate that Blockstream has successfully secured several billion dollars in funding for these initiatives, highlighting strong investor interest in the revival of the crypto lending market.
The crypto lending sector faced considerable turmoil following the collapse of the retail cryptocurrency exchange FTX, which was implicated in deceitful financial practices leading to a series of bankruptcies of formerly reputable crypto lenders. Such events underscored the need for innovative and transparent lending solutions.
Scheduled for launch in April, these three funds are expected to offer additional external capital starting in July. The two lending funds will be accessible for borrowing, opening new avenues for both individual and institutional investors.
In a broader move to expand its influence in the region, Blockstream recently opened a new office in Tokyo. This initiative is part of its strategy to drive the adoption of Bitcoin Layer-2 solutions, self-custody technologies, and the tokenization of real-world assets (RWA) in Japan.
As the cryptocurrency landscape evolves, Blockstream’s strategic investments may play a pivotal role in reshaping crypto lending and enhancing Bitcoin’s ecosystem.
