K33 Taps Bitcoin Holdings to Launch Crypto-Backed Lending

• K33 offers USDC loans backed by Bitcoin, providing liquidity for investors.
• K33’s Bitcoin reserves are leveraged to earn yield and expand offerings.

K33 is introducing a new way for Nordic investors to get into their crypto holdings without selling. The company’s latest product allows clients to borrow USDC with Bitcoin and other cryptos as collateral, making it one of the region’s first crypto-backed lending businesses. The product offering liquidity while maintaining long-term exposure to digital assets. 

K33 Leverages Bitcoin Holdings for Regulated Lending

K33 is a digital asset brokerage and infrastructure provider that serves institutional and high-net-worth clients. It is listed on the Nasdaq First North Growth Market. According to the official press release, Torbjørn Bull Jenssen, CEO of K33, said, “Crypto-backed loans give clients access to liquidity without having to sell assets they believe in for the long term.”

He also said that the new lending product is in line with K33’s larger Bitcoin treasury strategy, which is intended to make use of balance-sheet assets in ways that are beneficial to both clients and the firm’s earnings, basically a win-win for both, and it shows an organized approach to using the company’s Bitcoin reserves rather than keeping them inactive.

Then, the press release noted that Crypto-backed lending has become more popular worldwide, particularly among businesses searching for alternatives to conventional credit markets.

With the launch of K33’s new crypto-backed lending service, it provides a regulated, brokerage-backed solution specifically for local Nordic investors, as this area where adoption has been hindered by regulatory caution and insufficient infrastructure.

The new crypto-backed USDC loans are aimed at accomplishing a number of goals, which include increasing client involvement, diversifying K33’s product line, and generating income from the company’s Bitcoin treasury. With that, K33 aims to become a full-service distributor of digital assets by combining trading services with balance-sheet-backed financing, as per the press release. 

DeFi Lending in Focus as World Liberty Financial’s New Platform

In contrast to K33’s brokerage-backed, regulated strategy, decentralized finance is also experiencing a resurgence. A new crypto lending and borrowing platform was introduced last week by World Liberty Financial, a DeFi project named “World Liberty Markets,” built on Dolomite infrastructure. The on-chain marketplace centered around USD1and governance token is WLFI.  Where other cryptos like ETH, cbBTC, USDC, and major stablecoins like USDC and USDT are among the collateral it supports. While developments like crypto-backed lending, with new products, are broadening the crypto market access and reinforcing demand for alternative financing models.

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