Uncollateralized Lending Platform Truefi Reveals $100 Million Single-Borrower Pool Designed for Blockchain.com – Blockchain.com has announced that Truefi’s single-borrower pool has provided it with up to $100 million in liquidity. Over the first year, the pool will be capped at $100 million, with Blockchain.com intending to use the cash to improve its own liquidity pools, leverage trading assistance, and book of lending services.
Blockchain.com, a leading digital asset services and exchange, has announced that it has obtained $100 million in liquidity via Truefi, an uncollateralized borrowing and lending platform. Truefi, a decentralized finance (defi) platform, basically uses on-chain credit scores to enable uncollateralized lending. With “no lockup period and deep exit liquidity,” the platform claims to give lenders competitive yields.
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According to Truefi, the single-borrower pool will provide “debt to Blockchain.com, which would be accessible to every Know Your Customer-verified, non-US lender on the Truefi platform, providing them an estimated APY of 8.50% before incentives.” Truefi proved the notion of a single borrower pool with Alameda Research, and it also assisted Perpetual Protocol in creating the first protocol-to-protocol lending pool.
Truefi welcomes Blockchain.com into the fold, according to Rafael Cosman, CEO of Trusttoken, who also stated it doesn’t surprise him to see huge financial institutions utilize on-chain books.
“It’s encouraging, but also not surprising,” Cosman said, “to see more big financial institutions move their books of business on-chain, providing yet more financial prospects to our worldwide lender base.”
Truefi’s parent firm, Trusttoken, has “executed $1.3 billion in origination and $1 billion in repayments with no defaults” since November 2020.
Uncollateralized borrowing and lending, according to Blockchain.com head of credit and lending, Reid Simon, is very efficient, and the company plans to expand its portfolio.
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Uncollateralized Lending Platform Truefi Reveals $100 Million Single-Borrower Pool Designed for Blockchain.com – Simon explained, “Uncollateralized on-chain borrowing is one of the most efficient ways for high-quality borrowers to engage with global lenders at scale.” “We’re delighted to collaborate to provide the Truefi community a new financial portfolio to explore, and to grow the portfolio over time as Truefi lenders develop credit history.”