Cryptocurrencies
Jane Street Uses Decentralized Finance to Borrow Crypto
- BlockTower Capital is lending to the Wall Street firm
- The move ‘opens the floodgates’ of Wall Street embracing DeFi
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Wall Street trading powerhouse Jane Street, known for its dominance in markets such as exchange-traded funds and corporate bonds, is turning to decentralized finance to borrow crypto.
The New York-based company is going to initially borrow up to $25 million in USDC, a stablecoin pegged to the U.S. dollar, with plans to scale up to $50 million. It will borrow from crypto firm BlockTower Capital and will do so through Clearpool, a DeFi marketplace where institutions can get uncollateralized liquidity from a network of lenders. Launched on the Ethereum blockchain in March, Clearpool is backed by global investors including Sequoia Capital and Arrington Capital.