BlockFi had $1.8 billion in loans outstanding in Q2: report

Crypto lender BlockFi outlined the total amount of loans and net risk exposure it carried at the end of the second quarter 2022 and explained how he manages liquidity and credit risk.

Centralized crypto lender BlockFi revealed that at the end of the second quarter it had $1.8 billion in outstanding loans to institutional and retail investors and $600 million in "net exposure" .

The disclosure comes from its "Second Quarter 2022 Transparency Report" on Thursday, in which the company outlined its liquidity and credit risks and shared details about its institutional and retail loan portfolios . Of the outstanding loans to borrowers, valued at $1.8 billion, the company said $600 million were unsecured loans.

Institutional loans accounted for $1.5 billion of total outstanding loans, while retail loans accounted for the remaining $300 million. The firm has based its holdings and outstanding loan amounts on a Bitcoin (BTC) price of $19,986 as a benchmark.

We just released our second quarter transparency report with a breakdown of our total assets under management, retail and institutional loans, and how we manage cash and associated credit. risk.https://t.co/qcdRDcYmNQ

BlockFi said it has established guidelines to help it “maintain the liquidity necessary to meet all of our obligations in our core business activities, which include institutional and retail lending and trading activities” .

These guidelines state that it will retain at least 10% of the total amount due to customers on demand in inventory, which will be ready for return to customers.

It will also keep at least 50% of funds owed in locations that can be collected and returned to customers within seven days and will hold at least 90% of total amounts owed to customers on demand, either in inventory or on loan . which can be recalled within one year.

The new liquidity guidelines come weeks after BlockFi and crypto exchange FTX.US signed a