We Study Billionaires - The Investor’s Podcast Network BTC013: Bitcoin Lending & Borrowing w/ Blockfi's Zac Prince & Mark Yusko (Bitcoin Podcast)
Feb 17, 2021
Zac Prince, CEO of BlockFi, and Mark Yusko, a major investor at Morgan Creek Capital, dive into Bitcoin lending and borrowing. They discuss how collateralization works and the risks involved, shedding light on BlockFi's strategies for safeguarding deposits. The conversation also explores the impact of institutional lending, market volatility, and the importance of robust risk management. Prince gives his perspective on future lending rates, while Yusko shares insights on the evolving cryptocurrency landscape and the potential of new financial innovations.
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Zac Prince's Background
- Zac Prince's background is in FinTech and online lending.
- He saw an opportunity in crypto due to banks' slow adoption.
Custodians
- BlockFi uses multiple custodians (Gemini, Fidelity, BitGo) for security and diversification.
- They prioritize working with established custodians instead of building their own.
Over-Collateralization
- BlockFi offers over-collateralized loans, requiring borrowers to post more collateral than the loan amount.
- This protects lenders if the collateral value drops.