SINGAPORE, March 25, 2022 /PRNewswire/ — Babel Finance today announced the completion of a 2-year Mark to Market cryptocurrency exchange, equivalent to $50 million between Bitcoin and Ethereum.

Fast facts

• Transaction: Cross-Marketplace Cryptocurrency Exchange (MtM CCS)
• Currencies: BTC and ETH
• Rising: 50 million US dollars

It’s a 2 year rare transaction in the cryptocurrency market for institutions, representing an increase in sources of liquidity from new transactions and new products. It also marks another step towards greater maturity for the cryptocurrency lending market.

The synthetic swap is an upgrade from a pure deposit/loan transaction, and will contribute to a more efficient market and reduced arbitrage space, while providing more liquidity to market participants, Yang Song said, treasury manager at Babel Finance.

This new type of transaction comes as more experienced finance professionals continue to join Babel Finance. Song Yangwho oversaw the transaction, has more than 10 years of experience in cash management at Commerzbank AG., the second largest bank in Germany.

“Until 2022, we have rarely seen liquidity transactions longer than three months in the crypto market. This may be the first such transaction,” said Song Yang. “It could be seen as an upgrade of crypto lending services from generation 1.0 to 2.0.”

There is currently a lack of comprehensive data in the cryptocurrency lending/borrowing market. But according to preliminary estimates, the size of the crypto lending/borrowing market, including CeFi and DeFi, has reached around US$8.2 billion^[1], with active parties such as Genesis Capital, Celsius, B2C2, Nexo, Babel Finance and more. Yet, long-term liquidity is often not provided.

This 2-year transaction indicates that long-term assets are diversifying as part of the continued development of the crypto ecosystem. As the structure of the cryptocurrency market matures, more long-term assets are on the way. This will result in an increase in market demand for long-term liquidity. Overall, this indicates the healthy development of the crypto market structure and the growing confidence of market participants.

“This ETH loan demonstrates growing long-term market demand for ETH, based on developments in DeFi, NFTs and new projects,” said Song Yang.

About Babel Finance

Babel Finance is one of the world’s leading providers of crypto financial services, offering institutional investors and HNWIs professional services covering crypto lending and crypto trading. The company is backed by leading investors including Sequoia Capital China, Tiger Global Management, BAI Capital, Zoo Capital, Dragonfly Capital and NGC Ventures. With a commercial focus on Asia and a head office at SingaporeBabel Finance has established close cooperative relationships with major global stock exchanges, custodians, investment funds and mining institutions.

Contact: [email protected]

SOURCE Babel Finance