Novogratz’s Crypto Bank Galaxy Digital Invests in Digital Asset Lender

DrawBridge announced in a press release published on Aug. 8 that it received funding from Galaxy Digital, further strengthen DBL’s fiat-crypto lending and investing capabilities. 

Digital asset lender DrawBridge Lending (DBL) announced that it received funding from cryptocurrency commercial bank Galaxy Digital.

Furthermore, the two firms reportedly plan to jointly develop a co-branded special-purpose loan funding vehicle to provide structured financing against institutionally held crypto assets.

A fiat-crypto lending and investing service

Michael Novogratz, CEO and founder of Galaxy Digital, commented on the development:

“The institutionalization of digital assets is still relatively nascent despite increasing momentum and interest from a number of respected firms and industry players. … As we look to the future, we recognize the benefit of aligning ourselves with smart and innovative strategic partners who know how to effectively execute in the institutional space. The team at DBL fits the bill in this regard.”

A regulated crypto lender

Per the report, DBL is a licensed lender and is able to provide commercial loans in 49 states and Washington, is a registered commodity pool operator and commodity trading advisor with the national futures association.

Christopher Ferraro, President of Galaxy Digital, is quoted in the release stating:

“Investors are absolutely opening up to the idea that a new asset class is being formed.”

As Cointelegraph reported earlier today, San Francisco-based crypto lender (and DBL competitor) Dharma has decided to pause new deposits and loans on its platform.

No Humans Required: Commerzbank Develops Blockchain Payments for Automated Trucks

Commerzbank has developed a blockchain-based solution for machine-to-machine payments that it says could be used to allow automated trucks to pay for power charging without the need for a human to get out their wallet.

Calling it a “concrete pilot project”, the German bank worked together with its incubator research and development unit and Daimler Trucks on the system that it said “deals with fully automated payment processing of charges between a tank charging station for electricity and a lorry system.”

The partners have already proved the system works, according to an announcement on Thurday. In test transactions, Commerzbank put euros on the blockchain system and and sent it to Daimler Trucks for the settlement of the payment.

The bank doesn’t explain much of the detail, however, for example how euros are transacted on the system or how the charging station would receive and process the payment.

It does say that, as machines are becoming “increasingly interconnected and increasingly autonomous”, there’s a growing need to allow mutual settlement with “no payment triggering by a human actor.”

“Current payment systems can not yet map such a fully automated payment process”, the bank said.

According to Stephan Müller, divisional board member of transaction banking at Commerzbank, the new blockchain platform is part of his institution’s increased focus on blockchain tech. He said:

“Following the recent digitization of securities transactions and the use of blockchain technology, we are now focusing on DLT-based payment structures. As a bank, we naturally also see our mission as creating new digital payment architectures for our customers.”

Commerzbank said that the pilot has “proved” that in future the payment process for automated machines can proceed fully autonomously. The advance could offer efficiency improvements in the short term, it added, and also has possibilities across other industries where machine-to-machine communication may be applicable

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