{"id":19613,"date":"2019-08-07T12:55:00","date_gmt":"2019-08-07T12:55:00","guid":{"rendered":"http:\/\/ci027cfe70200e2697"},"modified":"2025-01-27T21:35:56","modified_gmt":"2025-01-27T21:35:56","slug":"galaxy-digital-makes-next-move-crypto-lending-markets","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/galaxy-digital-makes-next-move-crypto-lending-markets","title":{"rendered":"Galaxy Digital Makes Its Next Move in Crypto Lending Markets"},"content":{"rendered":"
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DrawBridge Lending (DBL), a digital asset loaning, borrowing and investing company, has received an investment from merchant bank Galaxy Digital with the aim to greatly expand DBL\u2019s institutional investment and lending capacity.<\/p>\n

According to a statement, the two companies \u201cwill initially develop a co-branded special purpose loan funding vehicle (\u2018SPV\u2019) with a mandate to provide structured financing against institutionally held crypto assets,\u201d offering \u201cinstitutions a secure and regulated method for leveraging their digital assets while retaining ownership.\u201d <\/p>\n

This direct cash investment from Galaxy Digital<\/a> into DBL, will allow the loan and investment capabilities already on DBL\u2019s platform<\/a> to gain a wider audience.<\/p>\n

\u201cThe institutionalization of digital assets is still relatively nascent despite increasing momentum and interest from a number of respected firms and industry players,\u201d Galaxy Digital\u2019s founder and CEO Mike Novogratz said, adding that \u201cas we look to the future, we recognize the benefit of aligning ourselves with smart and innovative strategic partners who know how to effectively execute in the institutional space.\u201d <\/p>\n

Crypto Lending Strategy<\/h3>\n

Although DBL\u2019s crypto loans are very similar in some respects to those offered by BlockFi, a company that Galaxy Digital has cooperated<\/a> with in the past, Jason Urban, DBL\u2019s CEO, clarified in an interview with Bitcoin Magazine<\/em> that the two models are different in several key aspects. <\/p>\n

Whereas any customer may take advantage of BlockFi\u2019s loans, Urban said that DBL \u201cuses options markets to price all of our loans and investment products, and the options are deemed as swaps by the [Commodity Futures Trading Commission]. Because you cannot sell swaps to retail investors, all of our clients must meet certain accreditation threshold requirements.\u201d He added that the company is preparing itself for a time when a greater percentage of the overall crypto loan space is in the hands of accredited institutions.<\/p>\n

\u201cWe will offer loans in virtually any coin, so long as we can find a liquid or semi-liquid two-sided options counterparty to transact with,\u201d said Urban, adding that, besides bitcoin, \u201cthis includes many of the top 20 coins in the world\u201d as well as \u201ccoins that we\u2019re seeing increased interest in.\u201d<\/p>\n

Urban also claimed that DBL has additional plans to roll out new features in the next several months, primarily \u201ca coin lending platform where hedge funds and principal trading firms can borrow and lend coins in an anonymous fashion based on a credit profile which both parties can see. The feedback we\u2019ve gotten from the trading community in regards to this product is outstanding, and we are excited to launch that offering by late 2019.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

This latest partnership between Galaxy Digital and DrawBridge Lending will yield a co-branded crypto loan funding vehicle.<\/p>\n","protected":false},"author":2545,"featured_media":16666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[622,1537],"class_list":{"0":"post-19613","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-galaxy-digital","9":"tag-lending"},"author_data":{"id":2545,"name":"Landon Manning","nicename":"landon-manning","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/img_2749-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/galaxy-digital.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2545"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=19613"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/16666"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=19613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=19613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=19613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}