Crypto platform Blockchain.com on Thursday unveiled its crypto lending business, which had been brewing behind the curtains for months.
The platform launched the new service in August for a handful of its clients and targets it at institutions. Per the announcement, institutional clients of the platform have “lent, traded, or borrowed over $1.6B in cryptocurrencies,” and the loan writing amount touched $120 million for this month.
“Institutions’ needs are evolving so fast that they’ve outgrown standard borrowing agreements,” the announcement added. “They need a partner who can lend at large scale and is willing to customize agreements that prioritize risk above revenue.”
Founded in 2011, Blockchain.com is one of the oldest companies in the crypto arena and is known for it’s free to use Bitcoin wallet. According to its website, it runs over 43 million wallets, which have transacted over $200 billion with “the lowest fees in the industry.”
Despite the impressive numbers and popularity of the platform, the company faced harsh criticism due to chaos in its management. The company laid off dozens of its employees amid the crypto winter and also saw the departure of several reputed executives within months of their joining.
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Many former employees also questioned the management style of their CEO and complained about the lack of vision, which has kept the firm away from registering any profits yet.
Per the announcement, the company will issue loans in the “top 20 cryptocurrencies,” along with Tether and USD.
Another bubble in the crypto sector?
The jump of the wallet and data platform into the digital asset lending business is reasonable, given the massive demand for such services in the industry. According to Bloomberg, the crypto lending industry significantly surged in the last couple of years, touching $5 billion.
Blockchain.com will now directly compete with firms like Genesis Global Trading and BlockFi.
Meanwhile, the company also jumped into the crypto trading business in July by launching an exchange in an already over-crowded market.