Canadian company Blockstream has received multibillion-dollar investments to launch three new investment funds focused on crypto lending and hedge fund strategies, according to Bloomberg. These efforts aim to revive institutional crypto lending after the collapse of FTX in 2022.
Blockstream's New Investment Funds
Blockstream’s latest venture includes three distinct funds for institutional investors and high-net-worth individuals:
- Bitcoin-Backed Lending Fund – Provides loans backed by BTC collateral. - Crypto Borrowing Fund – Allows institutions to borrow using U.S. dollars as collateral. - Hedge Fund Strategy Fund – Utilizes hedge fund strategies in Bitcoin markets.
Revival of Crypto Lending
The collapse of FTX led to a crisis in the crypto lending sector. However, Blockstream's new investment initiative suggests that investor interest in Bitcoin-backed loans is returning.
Blockstream's Expansion into Asia
Blockstream is expanding its operations into Asia, opening an office in Tokyo and collaborating with Japanese firm Diamond Hands and Fulgur Ventures to promote Bitcoin Layer 2 solutions and self-custody platforms.
Blockstream is taking active steps to solidify its position in the cryptocurrency space through the launch of new funds and expansion into the Asian market, which could be a significant milestone in Bitcoin industry development.
