The cryptocurrency company Blockchain.com announced that it has raised up to $100 million in liquid funds from the Truefi Single Borrower Pool. The pool’s initial limit will be $100 million for the first year, and Blockchain.com intends to use the funds to strengthen its own “liquidity pools, leveraged trading support and credit services.”
Blockchain.com uses Truefi’s single borrower pool
Leading digital asset services and exchange company Blockchain.com announced it has raised $100 million in liquidity from collateral-free borrowing and lending platform Truefi Essentially, the decentralized financial (defi) platform Truefi uses on-chain credit scores to facilitate collateral-free lending. The platform claims to offer lenders competitive returns, “with no lock-in period and deep liquidity on the way out.”
According to Truefi, a pool of one borrower will provide “Blockchain.com debt [that] will be available to all verified, non-U.S. lenders on the Truefi platform, offering them an expected yield of 8.50 percent before incentives.” Truefi has already demonstrated the concept of a single borrower pool with Alameda Research and the team also helped Perpetual Protocol launch the first protocol lending pool.
The CEO of Trusttoken expects more financial institutions to “move their business books to the chain”
Rafael Kosman, CEO of Trusttoken, explained in a statement sent to Bitcoin.com News that Truefi welcomes Blockchain.com, and went on to say that he is not surprised that large financial institutions are using books on the chain. “It’s inspiring – though not surprising – that more and more leading financial institutions are moving their books of business to the blockchain, giving our global lender base even more financial options,” Kosman said. Trusttoken is the parent company of Truefi, and since November 2020, Trusttoken has “completed $1.3 billion in originations and paid $1 billion without default.”
Blockchain.com’s head of lending and borrowing, Reed Simon, believes that collateral-free loans and credits are very effective, and the company hopes to grow its portfolio. “Collateral-free on-chain lending is one of the most effective ways to connect high-quality borrowers with global lenders at scale,” Simon detailed. “We’re excited to work together to provide the Truefi community with a new financial portfolio to explore, and to grow it over time as we build credit history with Truefi lenders.”
What do you think about Blockchain.com turning to Truefi for $100 million in liquidity from the unsecured borrowing and lending platform. Let us know what you think about it in the comments section below.
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