Blockstream Secures Billions to Launch Bitcoin Lending Funds

Bitcoin developer Blockstream has secured a multimillion-dollar investment to introduce three new institutional funds. Two of these funds will focus on Bitcoin-backed lending, offering investors access to secured financing without selling their holdings.

Bitcoin Investment Solutions to Launch in April

Blockstream confirmed on March 4 that its institutional Bitcoin investment solutions will go live on April 1. The company will begin accepting external capital for these funds starting July 1.

“With institutional demand for Bitcoin-native finance growing, we’re building the foundation for a more robust and transparent lending ecosystem,” Blockstream wrote on X.

Our Bitcoin-backed funds now have an official launch date.

As reported by Bloomberg, Blockstream’s institutional-grade Bitcoin investment solutions will go live on April 1, with external capital acceptance opening on July 1.

🔹 Bitcoin-backed lending – Secure institutional…

— Blockstream (@Blockstream) March 4, 2025

The new investment products will provide Bitcoin-backed lending, allowing institutions to borrow against Bitcoin collateral. Additionally, they will offer USD-collateralized borrowing options, enabling investors to unlock liquidity while retaining their Bitcoin holdings. Hedge fund strategies will also be available, providing institutional-grade exposure to Bitcoin markets.

Blockstream Expands Its Asset Management Business

In January, Blockstream launched its asset management division forming the Blockstream Income Fund and the Blockstream Alpha Fund. The Income Fund is for loans from $100,000 to more than $5 million and constitutes a portfolio designed for portfolio growth based on revenue streams from Bitcoin infrastructure, such as the Lightning Network.

The company is also preparing to launch the Blockstream Yield Fund later this year, further expanding its Bitcoin-backed investment options.

Growing Interest in Bitcoin Investment Funds

Blockstream joins other major firms offering crypto-focused investment funds, including Grayscale, Pantera, Galaxy Digital, and Crypto.com. The company has been actively raising funds to support its expansion, securing $210 million through convertible notes in October 2024.

Blockstream’s new Tokyo office is part of its expansion strategy to bring Bitcoin-backed financial solutions to Japan and the wider Japanese market. The firm has also teamed up with a Japanese Bitcoin consultancy, Diamond Hands, and Fulgur Ventures to spur the adoption of Bitcoin layer 2 solutions and self-custody tools.

Blockstream CEO Responds to U.S. Crypto Reserve Plans

Bitcoin industry well-known figure Blockstream CEO Adam Back reacted to Donald Trump’s announcement of the strategic crypto reserve that the U.S. President made at a Sunday cabinet meeting. On March 2, Trump mentioned that the reserve would include Bitcoin and Ethereum together with other cryptocurrencies like XRP, Solana, and Cardano.

#bitcoin base, but still. pic.twitter.com/dfptRXb5YA

— Adam Back (@adam3us) March 2, 2025

Back was among several industry leaders who criticized the inclusion of assets beyond Bitcoin, questioning the rationale behind selecting multiple cryptocurrencies for the reserve.

Blockstream was founded in 2014 and is continuing to create Bitcoin financial infrastructure such as the Liquid Network, a sidechain meant for off-chain, speedy transactions, and settlement services. In addition, as a part of its wider strategy, the company is looking at tokenizing real-world assets.