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BabelFinance predicts $1 billion in crypto-backed loans by the end of the next bull run

Sarvesh Kumar



$88 million worth of crypto loan outstanding; BabelFinance not the only one in the industry
Source: Pixabay

BabelFinance, a bank offering service to crypto-investors, crypto-miners and institutions related to crypto, is in the news after it announced that it had issued crypto-backed loans worth $110 million, out of which $88 million were outstanding loans.

The bank provides loans via stablecoins collateralized by deposits of Bitcoin. However, the bank plans to include Ethereum, Litecoin, BCH, and a few others as well soon.

According to Flex Yang, Founder and CEO of BabelFinance,

“Over the past few months, we’ve seen a dramatic increase in speculative borrowing from consumers and institutions. It is clear that in China and elsewhere globally, anticipation is building for higher crypto prices.”

The bank is looking forward to continue offering crypto-backed loans, as well as new interest earning crypto-deposits. BabelFinance is further launching BabelLabs, a new venture that will look at supporting decentralized finance research and work as a platform between traditional finance and blockchain technology.

Yang added,

“We see a better crypto finance world. It is our corporate responsibility to support innovation with better financial tools and solutions. Crypto is back on the rise, but it is a different landscape than previous bull runs. We need to have tools in place to support mainstream adoption, and institutions need liquid funds to continue the acceleration of their project development. Our re-brand is more than a name change; it’s a reflection of our company’s effort to provide more services, globally to support crypto adoption.”

Yang also claimed that the bank hopes to issue $1 billion in crypto-backed loans by the end of the next crypto bull run.

BabelFinance is not the only bank that has a huge sum of outstanding crypto-backed loans. Bixin Capital and FBG Capital are one of the few banks that also offer crypto-backed loans. The two have outstanding loans worth $10 million and $15 million, respectively.

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TRON & XRP: Market oscillation subsides as resolute bulls take over; rationality over rewards?




TRON & XRP: Market oscillation subsides as resolute bulls takeover; rationality over rewards?
Source: Unsplash

A mere sighter of the bullish swings within the cryptocurrency space suggests that bulls are temporary; upswings don’t last and market oscillations are a part of normalcy. The cryptocurrency realm’s relationship with bulls is an affair, not a romance, but if one were to go by present market movements, they would think love is in the air.

Since the beginning of the second quarter of 2019, the bulls have blessed the cryptocurrency market, pushing Bitcoin’s price from $4,000 to its current price of $9,150. Even with such a sharp turn for the better, there have been no steep falls, no hairpin bends, and no cliffs along the way.

The price chart for the collective market has been on the up-and-up, with even the worst of pullbacks not halting the bullish march. On the flipside, even positive isolated news for certain coins in the market have not resulted in major rallies. Rather, a calm sober sway up the price path is noticed. Two key tell-tales of this nonchalant, oscillation-less movement up the charts are Tron [TRX] and XRP, each with their own set of buoyant news.

Justin’s Sun’s Tron, on the back of yet another one of Justin Sun’s marvelous marketing masterpieces, was firmly at the centre of the cryptocurrency world, until Libra stole its thunder. However, the humdrum was not due to another Tesla half-kept promise, but due to him winning a charity auction for a lunch-date with none other than the Oracle of Omaha, Warren Buffett.

TRX peaked at $0.041, following the announcement of the lunch date between the investment tycoon and Sun. However, the current price is not a far cry from the aforementioned high. At press time, the 12th largest cryptocurrency in the market was trading at $0.033 and the plummet between the two price points was $0.029, implying the fact that the news did not have any larger implications on the Tron ecosystem or TRX itself.

Source: Trading View

XRP, the bank coin, also did not see a massive pump or dump following the announcement earlier this week. Ripple, the altcoin’s parent company, invested $50 million in MoneyGram, as the price of the coin spiked to $0.454 from $0.428. However with context, this pump pales in comparison to previous XRP spikes owing to announcements from the likes of Coinbase and Nasdaq, further acknowledging the fact that sober, and not erratic bulls, now dominate the cryptocurrency market.

Source: Trading View

Dovey Wan, Founding Partner at Primitive Ventures, attested to the “steady and solid” rise of the market, citing TRON and XRP. She tweeted,

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