BabelFinance, a crypto financing firm reported on Wednesday that it had given out about $110 million in form of crypto loans since inception in July 2018. The company says that most of its loans have been offered to Chinese entrepreneurs.
The company has majorly focused on the Asian markets and has seen its fortunes increase especially after it changed its name from BabelBank to BabelFinance. The statement from the company indicated that at one day a total $18 million crypto loans were issued in a single day. The financial institution indicates that it currently has an outstanding loan balance of $88 million.
Flex Yang, BabelFinance founder and CEO, said that there is an increase of demand for cryptos in the world, especially in Asia. Yang explained that there has been a drastic increase in speculative borrowing in the last few months both by institutions and individuals. The CEO says that the trend signifies that the majority of crypto traders expect the prices to go high in the coming days.
The Booming Crypto Financing Companies
BabelFinance is based in Hong Kong and provides various crypto related services such as digital assets management, handling deposits as well as loans. The company has developed tremendously and is a major household name among crypto enthusiasts. Due to its growth, various renowned crypto investors are now swimming the region to get a piece of the pie. The key names in the region comprise of ZhenFund, NEO Global Capital as well as Lightspeed China Partners.
Crypto lending firms are just a few crypto-based players that have gone against the bearish year long crypto market and recorded increased returns. There is an increased demand for loans against cryptos in the world as the trend in Asia can be seen in other regions.
BabelFinance is not the only crypto lending firm to register positive results this year. According to Finance Magnates, Genesis Global Trading gave out $425 million worth of loans to its customers in the first quarter of 2019. Totally, Genesis has written $1.8 billion in loans from March 2018.
BabelFinance expects the demand for crypto loans to keep rising. Yang explained:
“We anticipate to loan out more than a $1bn, or even $2bn, by the end of the next bull strike run.”
In efforts to expand in the crypto industry, BabelFinance is contemplating opening a branch that will deal with decentralized finance research. The company says that this will help in bridging the gap that exists in traditional finance and the crypto economy.
Yang believes its the company’s corporate responsibility to back innovation in the sector with good financial tools as well as solutions. The founder believes that the crypto market is on the rise but there is a need for better tools to lure mainstream support and adoption. He says that the rebranding of his company is not only meant for a name change but also increase the number of services offered.
Do you think the current bull run in the crypto market is fuelling the appetite for crypto loans? Share with us in the comments section.