Gradually, Bitcoin BTC strengthens its status as a reliable store of value and is increasingly popular with institutional investors as we have seen in many articles recently.
Fidelity Digital Assets, the cryptocurrency branch of the American financial giant Fidelity Investments, has just announced that it will offer its clients Bitcoin-backed cash loans.
Loans that will allow you to borrow money for a value of up to 60% of the client’s bitcoin holdings, says a news Bloomberg.
Fidelity Digital Assets only manages institutional investors such as hedge funds, family offices and market intermediaries.
As part of these secured Bitcoin loans, Fidelity Digital Assets will own the digital asset but will not deal with loans that will be managed by a third party company, says Tom Jessop, president of Fidelity Digital Assets.
This new service of secured loans in Bitcoin will indeed be offered in partnership with the blockchain startup BlockFi which already offers this type of service, loans ranging from 2000 to 100 million dollars against Bitcoin, Ethereum and some stablecoins.
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BlockFi therefore continues its development, the startup notably raised $ 50 million last August, attracting investors such as Valar Ventures, CMT Digital, Castle Island Ventures ou Winklevoss Capital.
According to the BlockFi site, the company has already attracted no less than $ 1.5 billion in deposits from institutional investors and individuals.
BlockFi which recently announced the launch of a Bitcoin credit card in partnership with Visa.
Tom Jessop, President of Fidelity Digital Assets, said:
“As the markets develop, we expect this to become a fairly important part of the ecosystem.
We want to develop world-class brokerage capability for assets of all types. ”
With this new announcement, Bitcoin sees its reputation and its status as a safe haven strengthened with institutional investors who are more and more numerous to buy BTC.
The Guggenheim investment fund has announced that it plans to invest $ 500 million in Bitcoin.
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