- Blockstream is launching Bitcoin-backed lending funds on April 1, allowing institutions to borrow against Bitcoin collateral and access USD-backed borrowing options.
- As part of its expansion, the company has secured billions in investment, opened a Tokyo office, and continues to develop Bitcoin financial infrastructure, including the Liquid Network and tokenized real-world assets.
Bitcoin infrastructure firm Blockstream is set to revolutionize institutional finance with the launch of its Bitcoin-backed lending funds. Having secured billions in investment, the company is introducing three new funds aimed at providing innovative Bitcoin investment solutions for institutions.
Institutional Bitcoin Lending Goes Live on April 1
Blockstream confirmed on March 4 that its Bitcoin lending funds will officially launch on April 1. These funds will enable institutions to borrow against Bitcoin collateral while also offering USD-backed borrowing options. This allows investors to access liquidity without having to sell their Bitcoin holdings.
Blockstream highlighted the growing institutional demand for Bitcoin-native finance, stating on X (formerly Twitter), “We’re building the foundation for a more robust and transparent lending ecosystem.”
Expanding the Bitcoin Investment Ecosystem
The new funds are part of Blockstream’s broader push into Bitcoin-backed finance. In January, the company introduced the Blockstream Income Fund and the Blockstream Alpha Fund. The Income Fund focuses on loan sizes ranging from $100,000 to over $5 million, generating returns through revenue streams linked to Bitcoin infrastructure like the Lightning Network.
Looking ahead, Blockstream is preparing to launch the Blockstream Yield Fund later this year, further expanding its portfolio of investment options.
Growing Competition in Bitcoin Investment Funds
Blockstream is stepping into a competitive space already occupied by major players like Grayscale, Pantera, Galaxy Digital, and Crypto.com. The firm has been actively raising funds to fuel its expansion, securing $210 million in October 2024 through convertible notes.
As part of its global growth strategy, Blockstream has opened a new office in Tokyo. The move is aimed at enhancing Bitcoin-backed financial solutions in Japan, in collaboration with local partners such as Japanese Bitcoin consultancy Diamond Hands and Fulgur Ventures.
Industry Reactions and Future Outlook
The launch of Blockstream’s new funds comes amid broader discussions about Bitcoin’s role in global finance. CEO Adam Back recently responded to U.S. President Donald Trump’s announcement of a strategic crypto reserve, which would include Bitcoin alongside other cryptocurrencies like Ethereum, XRP, Solana, and Cardano. Back criticized the inclusion of multiple digital assets, emphasizing Bitcoin’s superiority in long-term value storage and financial sovereignty.
Founded in 2014, Blockstream continues to pioneer Bitcoin infrastructure solutions, including the Liquid Network, a Bitcoin sidechain designed for faster transactions and settlement services. The company is also exploring the tokenization of real-world assets, positioning itself at the forefront of Bitcoin’s expanding financial ecosystem.
With its latest Bitcoin lending funds, Blockstream is making a bold statement: the future of institutional finance is Bitcoin-driven, offering a decentralized and transparent alternative to traditional lending markets.
