Crypto lending has become all the rage as of late, and a company in Toronto known as GDA Group has launched a new program it’s calling GDA Lending. Through this program, customers can potentially get their fingers on crypto-based loans and borrow funds in USD, BTC, ETH, EOS and Ripple’s XRP.
GDA Lending Is Making Crypto Lending More Mainstream
As digital currencies become more cemented in everyday society, the assets we’ve come to love are now being integrated into financial systems that ten or even five years ago, would have probably been strange or completely out of the ordinary. In addition, they probably would have stoked the fires of everyone’s fears and concerns, and a lot of experts and analysts alike would have scoffed at the idea of digital currency lending.
For example, many of the assets in question remain volatile, and have been so for many years. Thus, the idea of taking money out in assets that can go up and down at the drop of a hat may seem extremely risky. Still, this idea has taken off in recent years, and it’s growing by the day.
GDA Lending is offering a 65 percent loan-to-value ratio for the assets that have been named. It is now one of several companies – such as Nexo, Block Fi and Draw Bridge Lending – to offer crypto lending services to its many customers. In a statement, James Godfrey – advisor to GDA Group – explained:
Institutional investors are becoming increasingly more knowledgeable about digital assets and the unique investment properties they add to a modern portfolio. We are looking forward to adding GDA Lending into the GDA Group’s existing portfolio of financial products to deliver safe and seamless digital asset exposure.
The idea of lending out and borrowing bitcoin has become a bit more mainstream in recent months given how stable bitcoin is lately. In addition, it is also swimming through what has been one of its largest bull runs, with the world’s number one cryptocurrency by market cap recently striking the anvil of its all-time high yet again. It has been about three years since bitcoin was initially over $19,000, and now the currency is reaching this pinnacle again.
The Space Is Getting Much Bigger
Aside from this new lending program, GDA also gives its clients access to digital asset offerings, trading services and venture capital programs. Zach Friedman – chief operating officer at GDA Group – says:
GDA Group has been working tirelessly to create one of the industry’s most vertically integrated portfolios of structure digital asset products. Following this week’s announcement of the Global Fund Management division, our firm provides 360-degree coverage of all major facets of the digital asset sector.
It is estimated that approximately $73 million in new crypto loan funds will be entering the space by the end of 2022.