Portfolio manager for TWC Group Bryan Whalen<strong> </strong>has said that there have been increased inquiries by investors over crypto-lending features which he believes could be good for the future of bond funds.
<h2><strong>Investors are Asking Large Institutions for Crypto Lending</strong></h2>
During the <a href="https://www.bloomberg.com/news/articles/2021-09-23/crypto-market-starting-to-knock-on-the-doors-of-big-bond-funds" target="_blank" rel="nofollow noopener">Morningstar Investment Conference</a>, Bryan Whalen of TWC Group has said that crypto investors are increasingly asking large institutions for loans against their digital assets which he says could eventually happen even in bond investments too. Whalen who oversees about $225 billion as managing director of TWC’s fixed income group, said
<blockquote><em>“The market is starting to knock on the doors of big institutions, even in the bond world. What I’ve found has crept our way is incoming inquiries about the question of lending against crypto.” </em></blockquote>
While Whalen said that TCW does not service such requests, he suggested others such as hedge funds and alternative asset managers might.

For instance, <a href="https://www.cryptoknowmics.com/news/fidelity-investments-pushed-sec-to-approve-bitcoin-etf/">Fidelity Investments</a> partnered with <a href="https://www.cryptoknowmics.com/news/new-jersey-attorney-general-orders-crypto-lender-blockfi-to-stop-offering-services-to-new-customers/">BlockFi</a> to allow institutional clients the ability to pledge Bitcoin against cash loans. At the time, Robin Foley, the chief investment officer of bonds for Fidelity, said, “For us, the role of crypto is really a cross-market, cross-company conversation. We are looking to the future as the market evolves.”
<h2><strong>Regulators Eyes Over Digital Asset Loans</strong></h2>
Meanwhile, the crypto industry has faced intense new scrutiny from regulators over its crypto lending and interest programs. For instance, BlockFi received backlashes from state regulators over its program.

While lawmakers in Kentucky lawmakers prohibited the crypto lender Celsius from offering accounts within the state, citing the company offering “unregistered securities” to clients and a lack of post-deposit transparency.

Coinbase too was scrutinized by the U.S. Securities and Exchange Commission threatened a lawsuit over its new crypto lending program. The yet-to-launch product is a way for investors to make money off of their invested crypto.

Investors are Asking Large Institutions for Crypto Lending: Report

The portfolio manager for TWC Group has said that there have been increased inquiries by investors over crypto-lending features.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Investors are Asking Large Institutions for Crypto Lending: Report

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