The crypto market sees a future with pension funds | Sept 25
The TWC Group’s portfolio manager said they received a lot of inquiries about crypto loans. That is good for the future of pension funds.
At the Morningstar Investment Conference, Bryan Whalen. from the TWC Group comment on the increase in inquiries from crypto investors as they increasingly require large institutions to borrow for digital assets. In addition, this even happens to bond investors.
Whalen is currently the Managing Director of the Fixed Income Group at TWC and has approximately $ 225 billion under management.
“The market is knocking on the doors of the big institutions, even in the bond world. I get a lot of questions about crypto credit. “
However, the director argues that TCW does not accommodate such requests, despite mentioning other names such as hedge funds and possible alternative asset managers.
For example, Fidelity Investments has partnered with BlockFi to give institutional clients the ability to mortgage Bitcoin for cash advances. Robin Foley, Fidelity’s chief investment officer for bonds, said they are weighing the future of the market.
“For us, the role of crypto is really a cross-market, cross-company conversation. We look to the future as the market develops. “
Although BlockFi is a well-known Fidelity partner, it is being scrutinized by various countries for its crypto lending program.
The crypto credit market is closely monitored
The crypto industry is facing a new test as regulators target loan programs and interest rates on cryptocurrencies. As mentioned earlier, BlockFi has received a number of negative reactions from government regulators regarding their program.
On September 23, 2021, Kentucky lawmakers began considering another crypto company. The state has banned crypto lender Celsius from providing accounts to customers. Lawmakers cited that the company offered unregistered securities and lacked transparency after sending funds.
In addition, Coinbase also received backlash from the US Securities and Exchange Commission for its new crypto loan program. The company planned to launch its new product Lend so that investors could make money on their crypto investment. However, the SEC has threatened a lawsuit and it is unlikely that Coinbase will be left alone.
A week later, Coinbase decided to abandon the plan.
According to Beincrypto