Blockstream Will Launch Three Bitcoin-backed Funds

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Bitcoin developer Blockstream has reportedly secured a multibillion-dollar investment to launch three new funds.

According to a Bloomberg news report on Tuesday, two of these funds will focus on cryptocurrency lending, with the information coming from sources familiar with the matter.

The report suggests that this investment indicates a renewed interest in crypto lending, a practice that declined in popularity following the collapse of FTX in 2022.

In January, Blockstream announced its intention to establish a fund that underwrites Bitcoin-backed loans and another that supports crypto borrowing using US dollars as collateral. The third fund, as reported by Bloomberg, will involve deploying hedge fund strategies.