Blockchain, a Luxembourg-based company most well known for being the top choice for mobile lite Bitcoin (BTC) wallets, have publicly announced their entry into the crypto lending industry.
Apparently their lending desk originally opened up for a select group of clients in August and has already performed $1.6 billion of transactions putting it among the top 5 crypto lenders.
The Blockchain lending desk focuses on institutional clients and brands itself as unique since it is able to make customized terms depending on the needs of each client. This is unlike most other major crypto lenders, which are generally transparent and systematic with their lending terms.
According to Blockchain, institutional clients in the crypto industry have expressed concerns over the lack of available counterparties who lend at large scale across the top 20 major cryptocurrencies as well as USD and Tether (USDT).
In addition, institutional clients have apparently outgrown standard borrowing agreements according to Blockchain, and these clients want a partner who can make custom agreements that prioritize risk above revenue. Also, Blockchain claims clients do not have the appetite or ability to manage highly leveraged loans that prioritize revenue over stability.
In August, Blockchain.com lent out $10 million in new loans. The business is emerging as market participants question whether there is a credit bubble pop looming in the nascent digital asset market. The firm estimates it is now one of the top five crypto lenders.
Essentially, Blockchain’s lending desk is breaking out from the regular way that crypto lending desks are organized and is aiming to have a flexible range of terms and create personalized loans for clients.
The CEO of Blockchain, Peter Smith, says they are aiming to loan out $120 million by the end of this month. When asked about the risk of loaning so much so fast, Smith claimed that Blockchain loans are highly collateralized, making a ‘Lehman moment’ impossible.