Blockstream to Launch 3 Funds After Raising Multi-Billion Dollar Investment
The funds, two of which will focus on cryptocurrency lending, are expected to launch in April, people familiar with the matter told Bloomberg.
Updated Mar 4, 2025 9:13 PM UTC Published Mar 4, 2025 7:19 PM UTC
What you need to know:
- According to Bloomberg, Blockstream has raised several billion dollars to create three investment funds, two of which will focus on cryptocurrency lending.
- The funds, scheduled to launch in April, will provide bitcoin-backed loans, cryptocurrency loans backed by U.S. dollars, and hedge fund strategies.
- The move is part of Blockstream's expansion in Japan to promote Bitcoin Layer-2, self-custody and real-world asset tokenization solutions.
Bitcoin technology company Blockstream announced on Tuesday the launch of three investment funds, two of which will focus on cryptocurrency lending.
A cryptocurrency company co-founded by renowned Bitcoin (BTC) developer Adam Back plans to create a fund that will issue loans backed by Bitcoin and a fund that will allow borrowing the cryptocurrency using U.S. dollars as collateral, while a third fund will employ hedge fund strategies, according to a tweet.
Earlier, Bloomberg, citing anonymous sources, reported that the company had raised several billion dollars in funding to launch these funds.
The crypto lending sector has been hit hard since the collapse of former crypto exchange FTX, whose falsified balances and eventual inability to return funds provided by users led to the bankruptcy of several then-reputable crypto lenders.
Three funds will begin operations in April, while additional external capital will be accepted in July. Two credit funds will be available for borrowing.
Blockstream recently opened a new office in Tokyo as it plans to facilitate the adoption of Bitcoin Layer-2 and self-custody technologies, as well as real-world asset (RWA) tokenization in Japan.
