DrawBridge and Lending Industry
The cryptocurrency industry has come quite far since the release of bitcoin kick-starting the industry in 2008/2009. From its organic early days with a core base of libertarians, hackers, and silk road participants to the addition of Silicon Valley folks like Naval Ravikant, Balaji Srinivasan, USV, financiers like Mike Novogratz, Peter Briger, the Winklevoss twins, and others, we’ve seen significant growth and vast changes in the industry.
The cryptocurrency industry has passed several milestones and now has many different professionals deploy more complex instruments within the cryptocurrency industry such as bitcoin bonds, cryptocurrency derivatives, and other financial instruments that may increase or decrease risk. A burgeoning sector within the digital asset industry is cryptocurrency lending.
We’ve seen the rise of decentralized finance, then centralized players like BlockFi, Celsius, and Figure Lending, and Nexo. Drawbridge Lending is a new entity that seeks to bring about more options to different parties within the growing digital asset industry.
DrawBridge Lending Customers
DrawBridge Lending is a USD lender that takes in cryptocurrencies and lends out fiat currency. The firm just announced that that it can now service California, and 48 other states; as such, the entity is growing, and growing fast. As the firm expands, it seeks approval from the relevant authorities and makes bitcoin-backed loans to institutional clients in a regulated fashion. DrawBridge Lending CEO recently noted, “this approval further demonstrates our commitment to keeping the highest level of compliance and providing the most affordable lending products in the US.“ The firm is registered with the CFTC and aims to deal exclusively with institutional clients with the rapidly growing cryptocurrency sector.
The lending firm is one entity launched earlier this year in February but has flown under the radar for the majority of this year. It works with clients that range from cryptocurrency miners and institutional investors that hope to utilize loans to increase their gains.
One unique feature of DrawBridge Lending is that it doesn’t require margin calls. Participants in the program deposit bitcoin, borrow at 2.5% APR and participate in terms that range from one month to six months. DrawBridge states that utilize “qualified and insured custodian and risk management strategies” to minimize the chances of loss and protect everyone involved in the process.
DrawBridge Next Moves
The lending entity operates solely within 49 states within the United States and has plans to further its presence and extend to international markets. According to a recent press release, the firm “is currently building out its product suite to include investment opportunities and a coin lending platform which is currently in beta-phase development.”