The crypto lending market has largely stagnated since the collapse of FTX.
Institutional investors have tokenized a loan on the Avalanche (AVAX) blockchain and sent it to a counterparty.
According to the March 5 announcement, venture capital firm Electra, with over $1 billion in assets under management, lent an undercollateralized AVAX loan to a proprietary trading firm with 4x leverage. The loan was facilitated by Trident Digital Group and Membrane Labs. Developers wrote:
“For our product to work we needed the terms to be commercial, the counterparties to be real, and the token to be in demand,” said Anthony DeMartino, Co-Founder and CEO of Trident. “While BTC and ETH are relatively available, our conduit will focus on lending alt coins.”
