Lendingblock Announces Partnership with Caspian
— Institutional participants benefit from borrowing and lending cryptocurrencies at scale through regulated exchange as lending infrastructure starts to bolster —
London, 1 July 2019 – Lendingblock, the regulated, open exchange for institutional borrowing and lending of digital assets today announced a partnership with Caspian, the institutional crypto trading platform. This partnership enables essential market infrastructure for borrowing and lending digital assets to be scaled to institutions globally.
The integration between Lendingblock and Caspian will offer institutional investors that use Caspian’s order-execution management system across both digital assets and traditional capital markets the opportunity to access cryptocurrency lending markets for additional yield-enhancing opportunities. Banks, market makers, hedge funds, asset managers and trading firms can now facilitate lending and borrowing across multiple digital assets for arbitrage, short selling, working capital purposes and managing inventory, amongst other strategic needs. Investors can also use Lendingblock’s risk free lending yield curve as a data point to evaluate true price discovery of key assets.
“Despite volatility seen across the cryptocurrency market over the course of the year, crypto lending is something that has continued to boom. Providing Caspian clients with access to a regulated, secure and transparent crypto to crypto lending exchange is closing an important gap in the market for institutional investors,” said Robert Dykes, CEO and Co-Founder of Caspian.
“This partnership will drive forward the maturity of what is currently a nascent, fragmented and opaque crypto lending market and exemplifies a key step forward for the crypto industry,” he continued.
Once live, Caspian clients will have access to additional liquidity through Lendingblock’s cryptocurrency lending markets and also have the ability to use stable coins as principal and collateral.
Steve Swain, CEO of Lendingblock commented: “The securities lending market is fundamental to traditional capital markets, providing market efficiency and helping the market function smoothly. Over $10 billion were generated in income from loans last year, and in crypto, we estimate the loan market being under 1% of the industry’s total market capitalization. Working with Caspian to provide funds and other institutions access to this lending infrastructure is fundamental to building out broader commercial adoption of digital assets.”
The partnership between Lendingblock and Caspian further aids institutional investors access to and participation in cryptocurrency markets.
Lendingblock is an open exchange for borrowing and lending digital assets. It allows borrowers and lenders to enter into fully collateralized crypto vs crypto lending agreements. Lenders can earn incremental interest income on their long-term investment in digital assets, while borrowers can use their digital assets as collateral to enable borrowing to support shorter term trading, hedging and working capital needs. Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets, a market that has $2 trillion of assets on loan and generated $10 billion in securities lending revenues in 2018. For more information visit our website or follow us on Twitter and LinkedIn.
Caspian is a full-stack crypto asset management platform tying together the biggest digital asset exchanges in a single interface. The platform offers compliance, trading, algorithms, portfolio and risk management, and reporting. Led by an experienced team of developers, and leveraging the capabilities and resources of two existing, successful financial businesses as its co-build partners, Caspian is building an ecosystem that enables sophisticated traders to operate more efficiently and improve their performance. For more information, please visit: https://caspian.tech/.
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