As credit concerns loom in crypto, Blockchain.com secretly builds multi-million dollar loan desk

Wallet provider Blockchain.com has been under the radar this year building out its crypto lending business. They have ramped up operations lending out $10 million in August to being on pace for $120 million this month.

Why it matters:

• The crypto lending market has been growing immensely in 2019. Genesis Capital reported loans outstanding have reached over $3 billion up from $1 billion at the start of the year. Celsius Network also just announced they have issued more than $4.2 billion loans up over $2 billion in the last three months alone.
• This type of growth has led to concerns over the credit risk in the system, however, the clients appear to be very creditworthy according to insiders as they claim to never have had a default or even a late margin call.