TWC Group’s portfolio manager sees more applications for crypto loans, which he says is good for the future of bond funds.
At the Morningstar Investment Conference, TWC Group’s Bryan Whalen noted the increase in inquiries from crypto investors. Whalen said digital asset investors are increasingly asking large institutions for loans on their digital assets. Moreover, he said it happens even in the world of bond investing.
Whalen oversees around $ 225 billion as chief executive of TWC’s bond group. âThe market is starting to knock on the doors of big institutions, even in the bond world,â he said. “What I discovered crept in our path are inquiries on the issue of lending against crypto.”
However, the director says TCW does not respond to such requests. Although he suggested others, such as hedge funds and alternative asset managers, could do so.
For example, Fidelity Investments has partnered with BlockFi to allow institutional clients to pledge Bitcoin against cash loans. Robin Foley, Fidelity’s director of bond investments, said they are looking to the future of the markets. âFor us, the role of crypto is really a cross-market, business-to-business conversation,â Foley said. âWe are looking to the future as the market evolves. ”
Despite the high-profile partnership with Fidelity, BlockFi has come under intense scrutiny from various states regarding its crypto lending program.
Crypto loan under control
The crypto industry faces a slew of new reviews as regulators target crypto lending and interest programs. As mentioned above, BlockFi has received a series of negative reactions from state regulators over its program.
Today, September 23, 2021, lawmakers in Kentucky focused on yet another crypto venture. The state has banned the Celsius cryptocurrency lender from offering accounts in the state. Lawmakers cite the company offering “unregistered securities” to clients and a lack of transparency after filing.
Additionally, Coinbase has received a major backlash from the United States Securities and Exchange Commission over its new crypto lending program. The company planned its new product, Lend, as a way for investors to make money with their invested crypto. Nonetheless, the SEC threatened to take legal action and inquired about the names on the product’s waiting list.
A week later, Coinbase spoke out against the product.
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