Galaxy Digital Announces Investment in the Digital Asset Lending Firm DrawBridge
Galaxy Digital has spotted growing potential in several crypto-related projects in its existence. The crypto commercial bank’s latest beneficiary is DrawBridge Lending (known as DBL,) a digital asset lender that announced this week that it was on the receiving end of funds that came from the previously mentioned company.
The information came to prominence in recent hours thanks to a press release, published by DBL. The funds received, according to the company, go a long way into making sure that DrawBridge has excellent fiat-crypto lending prowess, as well as the ability to invest.
A Special Purpose Loan Funding Vehicle
The two enterprises have the intention of coming up, together, with a special purpose loan funding vehicle that is co-owned. Such a product would offer structured financing against digital assets held by institutions.
Galaxy Digital’s CEO Mike Novogratz offered his comments after the alliance was made official: “The institutionalization of digital assets is still relatively nascent despite increasing momentum and interest from a number of respected firms and industry players. […] As we look to the future, we recognize the benefit of aligning ourselves with smart and innovative strategic partners who know how to effectively execute in the institutional space. The team at DBL fits the bill in this regard.”
A Little Bit More about DBL
DBL is an American company, and according to reports, it is fully licensed to function as a lender in the United States. It offers commercial loans to 49 states and the District of Columbia, and it is also registered as both a Commodity Pool Operator (CPO) and Commodity Trading Advisor (CTA) with the National Futures Association (NFA).
Basically, DrawBridge Lending’s contributions to the field are using a qualified and insured custodian and advanced risk management strategies to come up with the most appropriate ways to protect borrower assets and lender capital. The report states that DBL offers “financial flexibility to institutional clients looking to remain long on their crypto investments,” whilst providing the opportunity to reinvest and earn yield on an efficient, after-tax basis.
“Two core principles have guided our business since day one: risk management and compliance. In Galaxy Digital, we’ve found a partner who fully embraces this approach and will enable us to meet the steadily increasing institutional demand for many years to come,” were the words of DBL CEO and Co-Founder Jason Urban.
A New Asset Class is Being Formed
The announcement also has Christopher Ferraro, the President of Galaxy Digital, quoted as saying that “investors are absolutely opening up to the idea that a new asset class is being formed. Our partnership with DBL will allow more companies to realize benefits from their crypto holdings as the traditional ways of thinking about corporate and structured finance are being re-imagined.”
In related news, it was reported by a prominent crypto news site that Dharma, which happens to be one of DrawBridge Lending’s top rivals in the field, opted to take a pause in new deposits and loans on its system.
By Andres Chavez