Blockstream, a leading Bitcoin investment firm, is joining the crypto lending business. The company revealed that this initiative will allow institutions to borrow money without selling their Bitcoin. Coinbase has launched a similar initiative, while Tether plans to do the same.
This comes as big investors return to the crypto scene after the Terra and FTX collapse caused significant losses. Additionally, the pressure surrounding crypto policy is easing under President Donald Trump’s administration.
Blockstream Ventures into Crypto Lending
In a recent X post, Blockstream revealed plans to launch three new funds on April 1, two of which are dedicated to crypto lending. One fund will allow businesses to borrow money using Bitcoin as security, while another will allow them to borrow Bitcoin using cash as collateral.
The third fund, unrelated to lending, will help big investors invest in Bitcoin using hedge fund strategies. According to Bloomberg, Blockstream has raised billions of dollars for this project.
Last October, the Bitcoin development firm closed a pivotal $210 million funding round through convertible note financing. This funding was intended to significantly boost the company’s endeavors.
Crypto Lending is Making a Comeback
Crypto lending companies struggled in 2022 after the market crashed, and companies like Terra and FTX went bankrupt. Many lending platforms had poor risk management, and some were even involved in fraud.
The situation worsened when U.S. Securities and Exchange Commission (SEC) ex-Chairman Gary Gensler sued lending companies. He accused the firm of violating security laws.
Now, times are changing. The crypto market, particularly Bitcoin, is making efforts to rebound. Institutional investors are showing increasing interest in crypto investments as adoption rates rise.
Also, under President Trump’s administration, the SEC has already ended lawsuits against crypto firms like Opensea, Coinbase, Uniswap, and, hopefully, Consensys. These positive changes are helping bring back crypto lending.
Bitcoin is Becoming More Important for Investors
Blockstream’s new lending services follow its launch of an asset management division in January 2025. At that time, CEO Adam Back said Bitcoin was no longer just a small asset but an important part of modern investment portfolios.
With more investor interest and less government pressure, crypto lending could grow again. If Blockstream’s plan succeeds, other companies may follow, making lending a big part of crypto again.
Read More
All News
Floppypepe ($FPPE) is your ticket to the moon. Escape the ordinary and reach for lunar gains with this AI meme token. Secure your spot now before it's too late.
Join Now