Asian crypto lender BabelBank has witnessed an all-time high number of crypto-collateralized loans issued amid its rebranding efforts. The company is changing its name to BabelFinance, signifying its efforts to provide broader services for crypto clients, particularly within the Chinese market.
The crypto firm mentions in a statement that it has issued more than $100 million in loans since it launched last July. It also claims to have issued $18 million to new clients over a 24-hour period. BabelFinance has an outstanding loan balance of only $88 million.
“Compared to one of our counterparts, Genesis Capital, our accumulated loan balance is actually small,” BabelFinance CEO Flex Yang stated.
“Crypto lending is all about having strong partners, and we work with Genesis Capital to help amass loans,” Yang added. “For now, they are actually contributing to a large portion of our new balance as a funding partner.”
Partnerships seem to have hugely contributed to the early success of the startup. Per Yang, most of the firm’s clients are from China, which sounds ironic considering the blanket ban on digital currencies in the nation.
Cryptocurrency investors have had lots of adapting to do after China banned crypto trading in 2017. Virtual private networks and Tether served as alternatives for investors to circumvent the Communist Party’s laws.
Meanwhile, crypto miners still have free rein to operate within the nation. That is where BabelFinance takes a chunk of its clients. While it is not a household name in China, it is becoming relatively popular with mining firms. According to Yang, the startup maintains relations with the “top mining pools and the biggest electricity provider for mining in China.”
“We maintain a professional atmosphere and are always available when Chinese miners need to get in touch. We have been endorsed by KOL (Key Opinion Leaders), as well as several custodian service providers in China. Our product is user-friendly, and our repeat rate and referral rate are [the] highest in the industry,” he continued.
During crypto winter, cryptocurrency miners were hot on the company’s heels as they needed a way to protect their digital assets’ value amid the bearish market. Per Yang, they prefer Bitcoin-backed stablecoin loans. These types of loans allow investors to realize a level of price stability in volatile months.
BabelFinance said it is launching new offerings for both institutional and retail investors, including recurrent investment plans, hedging tools, and “Babel Triple.” According to Yang, Babel Triple leverage targets high-net-worth individuals who wish to benefit from Bitcoin’s price appreciation but “with controlled downside risk.”
BabelFinance is also rolling out a research and development startup called BabelLabs, which would support study on decentralized finance.
“We see a better crypto finance world. It is our corporate responsibility to support innovation with better financial tools and solutions,” Yang noted.