BitGo launches institutional digital asset lending services

BitGo, one of the largest crypto custodians, announced that they will be taking part in the rapidly growing digital asset lending markets. Having built a loan book of $150 million, they will begin competing with the likes of Genesis, BlockFi and Celsius who have built established businesses up to this point. BitGo will be offering loans in bitcoin, ether, litecoin, stablecoins and U.S. dollars.

Why it matters

• The crypto lending markets have been growing rapidly: In their Q4 snapshot Genesis Capital reported $545 million in loans outstanding, Babel Finance recently stated their loan book has grown to $380 million, and Celsius originated $2 billion loans this Fall alone. This has led to some speculation around a looming credit bubble, however, practitioners believe the market is healthy as most loans are over collateralized.
• This isn't BitGo's first foray outside their core custody business. Last month they acquired Harbor, a regulated security token platform with subsidiaries include a broker dealing and transfer agent. These recent moves point towards the goal of becoming a full-service prime broker that can handle not only custody but trading and lending as well.