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- BlockFi has shared its quarterly transparent financial report
- The company has almost $1.8 billion of outstanding loans
- 50% of $1.8 billion was capable of returning because of the clients
A report of BlockFi has disclosed that because of the clients, 50% of $1.8 billion of loans were capable of returning in less than seven days.
Currently, the crypto market is facing a downfall and has been extremely volatile for the past few months. Due to this, many companies in this industry have to share the transparency report regarding the ongoing crisis.
A centralized crypto lending platform, BlockFi has also issued its quarterly transparency report after getting financially injected by FTX.US. Last month, the U.S. exchange gave the company a $400 million credit facility. However, it is still to draw on it.
On July 22, the company issued its quarterly transparency report in which the company disclosed the assets in the platform and described the management of risk and financial issues.
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A brief of the report
In the report, the company mentioned that it has $1.8 billion of outstanding loans to the clients, out of which $600 million are uncollateralized because the company doesn’t need all the clients to post collateral.
According to the report, the company has issued $1.5 billion in loans to market makers, exchanges, miners, trading firms, hedge funds, and proprietary trading firms. The company allows a definite number of these kinds of institutional clients to take loans without posting collateral because the clients have to go through a credit due diligence process.
In this matter, the company said: “We ask institutional clients to post collateral, but it totally depends upon the type of level, the credit profile of the client, and the total amount and composition of the loan.”
The rest $300 million in outstanding loans are overcollateralized and considered retail loans. The retail clients can access the loan only up to an amount of 50% of its collateral.
BlockFi has introduced many rules and regulations regarding the management of financial risks and the responsibility for the company and its clients.
The company is currently holding $3.9 billion in different virtual assets, out of which $2.6 billion was transferred to the company, and the remaining $1.3 billion consisted of collateral posted by its clients.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
