Reports point out that Galaxy Digital is wanting to increase $250 million to fund loans to cryptocurrency corporations.
Cryptocurrency Bank Set for Fundraising Round
According to Business Insider, the cryptocurrency financial institution needs to supply cryptocurrency-collateralized US greenback loans to corporations working within the trade. Anonymous sources reportedly accustomed to the venture say Galaxy will settle for crypto-property in addition to mining as collateral for the loans.
The experiences additionally point out that Galaxy Digital will shut the primary spherical of fundraising for the venture in March 2019. Sources say the financial institution’s asset administration arm will likely be liable for providing the loans to cryptocurrency corporations.
The transfer represents a continued growth of the crypto financial institution into the crypto lending market. Galaxy Digital already provides loans to cryptocurrency corporations from its steadiness sheet.
Crypto Lending Growing in Popularity
This announcement although unconfirmed comes at a time when crypto lending seems to be gaining in reputation. The 2018 bear market seems to have left startups money-strapped an in want of capital infusion thus offering market alternatives for mortgage suppliers.
BlockFi, a Galaxy-backed crypto lending platform reportedly noticed its income and buyer base develop ten-fold. Salt Lending, one other firm working within the crypto lending area can be reportedly planning to develop its workforce primarily based on its growing income stream.
Earlier within the yr, Bitcoinist reported that crypto lending corporations are having fun with important success by catering to each side of the commerce.