DrawBridge Gains Galaxy Digital Investment08.08.2019 By Rob Daly Editor-at-Large
DrawBridge Lending, a leader in digital asset lending, borrowing and investing, announces that it has received an investment from Galaxy Digital Ventures LLC (“Galaxy Digital”) to further strengthen DBL’s fiat-crypto lending and investing capabilities.
DBL and Galaxy Digital intend to develop a co-branded special-purpose loan funding vehicle (“SPV”) with a mandate to provide structured financing against institutionally held crypto assets. This service will offer institutions a secure and regulated method for leveraging their digital assets while retaining ownership. The SPV is expected to serve as a launchpad for not only fiat lending but also other innovative crypto-fiat financing solutions.
“The institutionalization of digital assets is still relatively nascent despite increasing momentum and interest from a number of respected firms and industry players,” said Michael Novogratz, CEO and founder of Galaxy Digital. “As we look to the future, we recognize the benefit of aligning ourselves with smart and innovative strategic partners who know how to effectively execute in the institutional space. The team at DBL fits the bill in this regard.”
DBL offers financial flexibility to institutional clients looking to remain long on their crypto investments, providing the opportunity to reinvest and earn yield on an efficient, after-tax basis. The company is a licensed lender and is able to provide commercial loans in 49 states and Washington D.C., and is registered as both a Commodity Pool Operator (CPO) and Commodity Trading Advisor (CTA) with the National Futures Association (NFA).
“Two core principles have guided our business since day one: risk management and compliance,” said DBL CEO and co-founder Jason Urban. “In Galaxy Digital, we’ve found a partner who fully embraces this approach and will enable us to meet the steadily increasing institutional demand for many years to come.”
“Investors are absolutely opening up to the idea that a new asset class is being formed. Our partnership with DBL will allow more companies to realize benefits from their crypto holdings as the traditional ways of thinking about corporate and structured finance are being re-imagined,” said Christopher Ferraro, President of Galaxy Digital.