Galaxy Digital Stays Busy with New Investment into A Crypto Asset Lender, DrawBridge Lending

DrawBridge Lending (DBL), a digital asset loaning, borrowing and investing company, has announced that it has received an investment from Michael Novogratz’ owned merchant bank Galaxy Digital with the aim to greatly expand DBL’s institutional investment and lending capacity.

In a press statement, the two companies revealed that they will initially develop a co-branded special-purpose loan funding vehicle (SPV) with a mandate to provide structured financing against institutionally held crypto assets, offering institutions a secure and regulated method for leveraging their digital assets while retaining ownership.

This direct cash investment from Galaxy Digital into DBL will allow the loan and investment capabilities already on DBL’s platform to gain a wider audience.

Galaxy Digital’s founder and CEO Mike Novogratz explained that although crypto institutionalization is new in the industry, it is slowly gaining steam as many companies are being interested in crypto assets and the company has identified DBL as a strategic partner. He said:

“As we look to the future, we recognize the benefit of aligning ourselves with smart and innovative strategic partners who know how to effectively execute in the institutional space.”

According to Cointelegraph, DBL is an authorized lender in the US and is licensed to offer commercial loans in 49 states as well as Washington. The company is also registered as a commodity pool operator as well as commodity trading advisor by the national futures association.

Galaxy Digital has been spreading its investment base to various crypto-based firms and recently entered into a cooperation pact with BlockFi which offers similar services as DBL.

However, according to Jason Urban, DBL’s CEO clarified that his firm utilizes options markets to price all of our loans and investment products, and the options are deemed as swaps by the Commodity Futures Trading Commission. Since swaps cannot be sold to retail investors, all DBL clients must meet certain accreditation threshold requirements.

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Joseph Kibe
Joseph Kibe
Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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