Canadian company Blockstream, co-founded by renowned Bitcoin developer Adam Back, announced the acquisition of multibillion-dollar investments to create three new funds. These funds aim to revive institutional crypto lending after the collapse of FTX in 2022.
Blockstream's Three New Investment Funds
Blockstream's new funds are designed to serve institutional investors and high-net-worth individuals. The Bitcoin-backed lending fund provides liquidity without requiring asset sales. The crypto borrowing fund allows institutions to borrow funds using USD as collateral. The hedge fund deploys strategies in Bitcoin markets to achieve high yields. The funds will be launched in April with capital acceptance starting in July.
Reviving Institutional Crypto Lending
The crypto lending sector has faced challenges following the FTX collapse, but Blockstream sees an opportunity for recovery. The company aims to restore investor confidence through strong risk management and institutional-grade financial products. The new investment reflects confidence in the long-term potential of Bitcoin-based financial services.
Blockstream's Expansion into Asia
Blockstream is expanding operations into Asia, opening an office in Tokyo and partnering with leading consultants in Japan. This reflects the company's ambition to expand its presence beyond North America. Furthermore, Blockstream is collaborating with Fulgur Ventures to promote Bitcoin Layer 2 solutions and self-custody platforms. The company plans to advance real-world asset tokenization through blockchain-based digital tokens.
The launch of new investment funds and active expansion into the Asian market underscore Blockstream's ambitions to establish itself as a key player in the crypto financial services sector. The company's new initiatives are aimed at serving institutional clients and rebuilding trust in crypto lending.
