The crypto firm Blockchain.com has revealed it has secured up to $100 million in liquidity from Truefi’s single-borrower pool. The pool will be initially capped at $100 million over the first year and Blockchain.com aims to use the funds to bolster its own “liquidity pools, leverage trading support, and book of lending services.”
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 Know Your Customer-verified, non-U.S. lenders on the Truefi platform, offering them an expected APY of 8.50 percent, before incentives.” Truefi has already showcased the single 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 redemptions without default”.
Blockchain.com’s head of credit and lending, Reid Simon, believes uncollateralized borrowing and lending is very efficient and the company looks forward to growing the portfolio. “Uncollateralized on-chain borrowing is among the most efficient ways for high-quality borrowers to connect with global lenders, at scale” Simon detailed. “We’re excited to work together to provide the Truefi community with a new financial portfolio to explore and to grow the portfolio over time as we build credit history with Truefi lenders.”
