Loans from Alameda Research have been secured by Crypto broker Voyager Digital Ltd, the trading outfit from FTX founder Sam Bankman-Fried, to shore up protection for customer assets as the activity in the digital asset market remains highly volatile.
Voyager said it had signed a non-binding term sheet with Alameda for a $200 million credit facility, compiled using a mix of cash and USDC, a stable coin tied to the value of the US dollar. As crypto prices tumbled on Saturday morning in London, the sheet also included a revolving line of credit for 15,000 Bitcoins, worth roughly $285 million.
Due to the “current crypto market conditions”, the loans are intended to be used as a safeguard for client assets, Voyager said in a statement published on its website Friday, adding “and only if such use is needed.”
Hedge fund Three Arrows Capital is battling to secure additional financing while Crypto lenders Celsius Network and Babel Finance both suspended customer withdrawals as liquidity disappeared from the market. A number of firms also announced plans to lay off staff, which includes Coinbase Global Inc., Gemini Trust Co Llc and BlockFi Inc.
“Today’s actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders,” said Stephen Ehrlich, chief executive of Voyager.
Each facility expires on Dec. 31, 2024, with an annual interest rate of 5% payable on maturity. In addition to the new funds, Voyager said it already has more than $200 million on its balance sheet.