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BlockFills, a premier destination for digital asset trading and market technology leveraged by institutions and professional traders, and Balmoral Partners Investment Management, a leading global investment manager, announced a strategic partnership to introduce a new digital asset collateralized lending fund, the Balmoral BlockFills Fund. Scheduled to launch in June, it is a segregated sub-fund of the Balmoral Global Fund PCLP.
Digital asset collateralized lending is an advanced financial strategy enabling qualified borrowers to leverage their digital assets as collateral to access liquidity in fiat currency or stable coins without selling the underlying assets. The primary investment objective of the new fund, which is expected to launch with an initial $50million to $100 million, is to generate steady and consistent risk-adjusted returns by providing secured loans to borrowers who pledge digital assets such as bitcoin and ethereum as collateral. Institutional investors can access the strategy through a highly regulated fund vehicle managed by a proven investment management firm while also leveraging the Blockfills client ecosystem and trading infrastructure. Eligible borrowers will be able to access the institutional capital exclusively through the BlockFills platform.
BlockFills President and Co-Founder Gordon Wallace said: "This partnership enables BlockFills customers to benefit from Balmoral's extensive investor network and fund management experience. BlockFills' active lending desk and robust coverage of crypto-backed loans position us well to be the lending book partner for the Balmoral BlockFills Fund, which will be focused on crypto lending."
David Fallon, Founder and Chief Executive Officer of Balmoral Partners Investment Management, said: "The crypto lending market is gearing up for a dynamic new chapter, powered by enhanced risk frameworks, surging institutional interest and much-needed regulatory clarity. As the space matures, it's poised to become a powerful link between traditional finance and the fast-evolving digital asset economy, opening the door to broader adoption and innovation in crypto-driven financial services. BlockFills has propelled itself to be one of the fastest-growing crypto liquidity and technology providers globally, and we're excited about this strategic partnership through which we are jointly introducing the new lending fund."
BlockFills has one of the most active institutional digital asset lending and borrowing desks in the industry, providing a lending service since 2018.
Nick Hammer, CEO and Co-Founder of BlockFills, said: "We believe the timing is perfect to scale into this vertical in a more meaningful way. We're excited to combine our domain expertise with Balmoral's extensive fund management experience to expand our respective global footprints."
By focusing on digital asset-backed lending, the fund aims to offer investors an attractive alternative to traditional fixed income investments, with exposure to the rapidly growing cryptocurrency market. Fallon said the fund will seek to achieve its objective through a disciplined, conservative approach, targeting loans that are overcollateralized to protect against market volatility, and generating income through interest payments. The fund will aim to implement a collateralized lending strategy that operates in a similar fashion to a private credit fund, focusing on secured lending to institutional and high net worth, sophisticated borrowers, which reflect BlockFills' client base.
