The UK-based crypto wallet provider Blockchain.com unveiled its lending desk. By launching its lending desk, the company is gearing up to compete with firms like Genisis Global Trading and BlockFi.
Blockchain.com aims to lend $120 million this month.
CEO of the Blockchain.com, Peter Smith, wrote that since launching its lending services quietly to a few selected clients in August, the lending operation has quickly grown. He further claimed that their company had become one of the top five lenders as their institutional clients have lent traded or borrowed over $1.6 billion in cryptocurrencies. The CEO also revealed that by the end of this month, they intend to lend out over $120 million.
Crypto-lending market heading for a blow-up?
Earlier, Bloomberg reported that the crypto credit business is adding too much credit too fast, and it could be heading for a possible blow-up. However, Peter Smith did not seem concern about this issue. In an interview with The Block, he said that their company’s loan desk is so heavily collateralized that a Lehman moment would be impossible, referring to the collapse of Lehman Brother Holdings in 2008. The UK based company had come under spotlight after many of its executives left the organisation earlier this year.