As a seasoned crypto investor with over a decade of experience in this wild and ever-evolving digital frontier, I find myself increasingly intrigued by the surge in lending platforms and the growing interest from institutions. The numbers speak for themselves – Ledn’s $1.65 billion increase in loans processed this year is a testament to the maturing of our market.
This year, I’ve noticed a substantial surge in loan processing activities through lending platforms. As a user of Ledn, a company specializing in decentralized lending and savings, I’ve personally observed an impressive increase of approximately $1.65 billion compared to the same period last year.
In Q3 of 2024, our company lent over $437 million in digital asset loans to institutions, marking a 14% rise from the preceding quarter. This growth is tied to a broader movement of more institutions investigating digital asset-backed loans, driven by stricter monetary policies and fierce competition for dollar financing.
John Glover, Ledn’s chief investment officer, noted that we experienced a significant increase in institutional demand in July, and this trend has persisted since then. He further mentioned that institutional borrowing demand has mirrored the overall ETF demand pattern, with a comparable surge occurring in July.
Ever since it started operations in 2018, the company asserts that they’ve managed a staggering $6.5 billion in loans spread across retail and institutional markets. Interestingly, this figure increased by $1.65 billion for both sectors in just one year.
As per DefiLlama’s data, the total amount locked within lending platforms stood at approximately $31.9 billion by October 16.
This week’s Crypto Business Insight delves into Tether’s proposition for providing loans to traders, Grayscale’s suggested lineup of prospective cryptocurrency offerings, collaborations by Ripple with RLUSD partners, and Thailand’s SCB’s recent shift towards stablecoins.
Tether mulls lending to commodity traders: Report
Tether Holdings is exploring the possibility of providing loans to firms involved in commodities trading, as the company behind the stablecoin aims to utilize its substantial earnings of $5.2 billion from the first half of 2024. Reports indicate that Tether has held discussions regarding lending opportunities with multiple commodity trading businesses. In a recent announcement dated July 31, it was revealed that Tether has an unprecedented cache of US government bonds and is looking to expand its investments into various sectors such as renewable energy, Bitcoin mining, data management, artificial intelligence infrastructure, peer-to-peer telecommunications technology, neurotechnology, and education.
Grayscale puts DOGE, Worldcoin on list of 35 potential crypto products
Crypto asset manager Grayscale has expanded its list of potential investments to include 35 different altcoins, such as Dogecoin, Worldcoin, Pyth, and Rune. In a recent blog post, they divided the prospective tokens into five main categories: Currencies, smart contract platforms, financials, culture, and utilities. A majority of the newly considered assets belong to smart-contract platforms, with Grayscale selecting a diverse range of networks, including layer-1 blockchains such as Aptos (APT) and Sei (SEI), data availability network Celestia (TIA), and Ethereum scalability solution Mantle (MNT). Additionally, the tokens of various other networks, like Arbitrum (ARB), Cosmos (ATOM), Polygon (MATIC), Toncoin (TON), and Tron (TRX) were mentioned as assets that could potentially become investment products.
Ripple announces exchange partners for RLUSD stablecoin
Ripple has revealed the collaborating platforms for its forthcoming dollar-backed stablecoin, Ripple USD (RLUSD). The company offering blockchain infrastructure is teaming up with various cryptocurrency exchanges and platforms like Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish to streamline the distribution of the stablecoin. As stated by Ripple’s CEO Brad Garlinghouse, the ambition is for Ripple USD to set the bar high as the premier option for enterprise-level stablecoins.
Thailand’s oldest bank announces stablecoin remittance services
Siam Commercial Bank (SCB), Thailand’s oldest commercial bank, has announced it will initiate stablecoin cross-border payment and remittance services in partnership with fintech company Lightnet. This collaboration will enable the bank’s clients to conduct cross-border transactions round-the-clock, every day of the week, at lower costs compared to traditional methods. The reduced transaction fees associated with stablecoins make them an appealing choice for those receiving remittances from currencies of higher value.
Before you go: The number of Ethereum validators has surged by over 30% in the past year, reaching over one million for the first time in June 2024, driven by strong institutional adoption of cryptocurrencies.
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2024-10-19 00:07