Blockstream Secures Multimillion-Dollar Investment to Launch Two Bitcoin Lending Funds

Blockstream, a major Bitcoin development company, has landed a multibillion-dollar investment to launch three institutional funds

Major Bitcoin development company Blockstream is set to launch three institutional funds, two of which will feature Bitcoin lending capabilities, according to a report by Bloomberg.

The firm's institutional Bitcoin offerings will go live on April 1, with external capital acceptance set to begin on 1 July, confirming an earlier report by the news outlet.

The new products will include Bitcoin-backed lending and institutional financing using BTC as collateral, allowing investors to borrow U.S. dollars without selling their Bitcoin. Hedge fund strategies designed to provide institutional-grade exposure to Bitcoin markets will also be available.

The company will launch two funds—the Blockstream Income Fund and the Blockstream Alpha Fund—as part of its asset management business, which it introduced in January.

The Income Fund will focus on loans ranging from $100,000 to $5 million, aiming to cater to a diverse set of institutional investors.

Meanwhile, the Alpha Fund will prioritize swift portfolio growth by exploring various revenue streams, including DeFi and Bitcoin mining.

"With institutional demand for Bitcoin-native finance growing, we’re building the foundation for a more robust and transparent lending ecosystem," the company said in a statement on X.

Announcing the launch of Blockstream's institutional-grade Bitcoin investment solutions:

- Products will go live on April 1 with external capital acceptance beginning on July 1.

As reported by Bloomberg, the company previously secured $210 million in financing through convertible notes in October.

It now joins other major crypto asset managers, such as Grayscale and Galaxy Digital, offering diverse digital asset investment products.

The company's CEO and Bitcoin pioneer Adam Back has also criticized President Donald Trump's announcement of a strategic crypto reserve that includes multiple digital currencies beyond Bitcoin.

Trump stated on 2 March that his proposed reserve would contain Bitcoin and Ether (ETH), alongside XRP, Solana (SOL), and Cardano (ADA).

However, critics argue that Bitcoin alone should be the focus of any government-backed reserve.

The crypto lender Lava, which is based in New York, has raised $10 million in Series A funding from prominent venture capital firms Khosla Ventures and Founders Fund.

The Series A round also saw participation from Point72 Ventures, the venture arm of hedge fund manager Steve Cohen's private investment firm, and Broad Street Ventures, a venture capital firm focused on blockchain and cryptocurrency investments.

The startup, which launched earlier this year, provides a platform that enables users to borrow dollars against their Bitcoin holdings.

This addresses a common challenge for crypto investors who wish to leverage their assets without selling them.

In another development, cryptocurrency custody provider BitGo is launching institutional-grade Bitcoin staking through a partnership with Core DAO, a layer-1 blockchain platform.

This will make BitGo one of the first custodians to offer clients access to dual staking with Core DAO, enabling them to earn returns on their Bitcoin holdings.

This partnership will provide institutions with access to Core DAO's liquid staking technology, which enables users to stake their Bitcoin and receive a liquid derivative token called mBTC.

These tokens can be used in decentralized financial applications and provide pro-rata claims to the staked Bitcoin.

Institutions can then use these mBTC tokens to participate in DeFi protocols or borrow U.S. dollars in a highly efficient manner.