The Rapid Rise of Blockchain.com’s Lending Business
Based in the UK, Blockchain.com is making waves in the cryptocurrency space, poised to lend out over $120 million this month alone. This firm, which has historically been known for its cryptocurrency data and wallet services, is now venturing into the lending arena with a fervor that rivals established players like Genesis Global Trading and BlockFi.
A Quick History of Blockchain.com’s Loans
Just a few months back, the lending strategy was simple enough: Blockchain.com began by providing loans to other lending firms on a case-by-case basis. In August, they lent a modest $10 million. Fast forward to November, and they’re set to leap to over $120 million in loans. It’s like watching a toddler taking their first steps and suddenly running a marathon.
Are We Staring into the Abyss?
Not everyone is riding the optimism train, however. In October, a group of former Wall Street traders warned Bloomberg that the rapid increase in crypto credit could end in catastrophe. With credit being issued faster than party invitations at a college kegger, it’s hard not to worry about a potential meltdown.
“Crypto is still a small market relative to traditional asset classes, however, the feeling of déjà-vu is there,
