Unsecured Lending Platform Truefi Reveals $100M Unique Borrower Pool Built For Blockchain.com CryptoBlog
Crypto firm Blockchain.com has revealed that it has secured up to $100 million in liquidity from Truefi’s unique borrower pool. The pool will initially be capped at $100 million in the first year, and Blockchain.com aims to use the funds to bolster its own “liquidity pools, leveraged trading support, and lending services book.” .
Blockchain.com Leverages Truefi’s Unique Borrower Pool
Leading digital asset trading and services company Blockchain.com has announced that it has secured $100 million in liquidity from unsecured borrowing and lending platform Truefi. Essentially, the decentralized finance (defi) platform Truefi leverages on-chain credit scores to facilitate collateral-free lending. The platform claims to offer competitive returns to lenders with no “lock-in period and deep exit liquidity”.
According to Truefi, the single-borrower pool will provide “debt to Blockchain.com [that] will be available to all non-US lenders verified by Know Your Customer on the Truefi platform, offering them an expected APY of 8.50%, before incentives. Truefi has previously introduced the unique borrower pool concept with Alameda Research and the team also helped Perpetual Protocol launch the first protocol-to-protocol lending pool.
Trusttoken CEO expects more financial institutions to ‘bring their business books on-chain’
Rafael Cosman, the CEO of Trusttoken, explained in a statement sent to Bitcoin.com News that Truefi welcomes Blockchain.com into the fold, and further said that he is not surprised to see large financial institutions taking advantage of chain books. “It is inspiring – but not surprising – to see more leading financial institutions putting their business books on-chain, providing our global base of lenders with even more financial opportunities,” Cosman remarked. Trusttoken is the parent company of Truefi and since November 2020, Trusttoken has “achieved $1.3 billion in origination and $1 billion in default-free redemptions”.
Blockchain.com Head of Credit and Lending Reid Simon believes that unsecured borrowing and lending is very effective and the company is eager to grow the wallet. “Unsecured on-chain borrowing is one of the most effective ways for high-quality borrowers to connect with global lenders, at scale,” Simon explained. “We are excited to work together to provide the Truefi community with a new financial portfolio to explore and grow over time as we build credit histories with Truefi lenders.”
What do you think of Blockchain.com’s use of Truefi to secure $100 million in liquidity from the unsecured borrowing and lending platform? Let us know what you think about this topic in the comments section below.
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