News
by BSCN
March 5, 2025
The move comes after the FTX collapse caused a major downturn in crypto lending. Blockstream aims to restore confidence in Bitcoin-backed financial services.
Bitcoin infrastructure firm Blockstream has secured a multibillion-dollar investment to launch three new investment funds focused on crypto lending and hedge fund strategies, according to Bloomberg. The Canadian company, co-founded by legendary Bitcoin developer Adam Back, aims to revive institutional crypto lending, a sector that took a major hit following the collapse of FTX in 2022.
Blockstream’s latest venture includes three distinct funds, each catering to institutional investors and high-net-worth individuals:
These funds are set to launch in April, with additional external capital acceptance beginning in July. The goal is to provide institutional-grade exposure to Bitcoin markets, positioning Blockstream as a major player in the evolving crypto finance sector.
Crypto lending has been on a rocky path since the FTX collapse, which exposed risky lending practices and left many institutional lenders bankrupt. However, Blockstream’s new investment initiative suggests that investor appetite for Bitcoin-backed loans is returning.
The company had already hinted at its lending ambitions in January. Now, with billions in funding secured, it aims to restore trust in crypto lending through strong risk management and institutional-grade financial products.
According to Bloomberg, the fresh investment into Blockstream reflects a renewed confidence in the long-term viability of Bitcoin-based financial services.
The timing of Blockstream’s announcement aligns with increased political and institutional interest in digital assets. Former U.S. President Donald Trump recently proposed a strategic crypto reserve, which could include Bitcoin, Ethereum, XRP, Solana (SOL), and Cardano (ADA).
Trump’s proposal has divided the industry, with Adam Back criticizing the move for including "lesser-known tokens" instead of focusing on Bitcoin as the dominant digital asset.
Industry experts believe the proposal, if implemented, could trigger the next phase of the Bitcoin bull market.
Alongside its new investment funds, Blockstream is expanding its operations into Asia, signaling its ambition to grow beyond North America.
As part of its investment strategy, Blockstream recently introduced Blockstream Asset Management, overseeing its newly launched funds.
The company has also revealed plans to explore tokenization of real-world assets (RWAs), allowing investors to gain exposure to physical assets through blockchain-based digital tokens.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
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