Babel Finance is actively working towards making available traditional financial market instruments, players and systems available to the cryptocurrency market
Grow Your Business, Not Your Inbox
Stay informed and join our daily newsletter now!
4 min read
Opinions expressed by Entrepreneur contributors are their own.
A prominent attribute we’ve come to associate with Bitcoin ecosystem and market capitalization is that it’s a highly volatile asset class. It’s typical to see this type of sharp movements in times when news, rumors or technical glitches may cause incredible up and down movements of the price. It’s also one of the key reasons that have kept most traditional financial players out of the market, fearing the uncertainties with pricing may affect their capital.
It’s also one of the many reasons why we have witnessed slow adoption of blockchain technology, because big traditional financial institutions wouldn’t partner with blockchain-based companies aiming at providing real value in the finance sector for fear of getting burnt. Very few companies have been open to providing financial aids, assistance and backup for these companies.
The days of high volatility and uncertainties surrounding the valuation and price of Bitcoin have started to slow down as a new breed of ex-Wall Street and financial experts from top financial firms are slowly entering the market bringing with them some wealth of knowledge and experiences that would be useful for blockchain and cryptocurrency integration into the global traditional finance industry and practices. Despite the ups and downs Bitcoin have continuously been driven into the hands of big financial institutions that have started creating products, best tailored for the traditional financial market.
It is the brain behind the current somewhat stability in price we are experiencing as Bitcoin moves between $12,000 and $9,000 in the last couple of days.
One of such company that has provided financial assistance for blockchain/cryptocurrency themed companies in the days where there was little to no provision for these companies emanating from the West is Babel Finance. Notable companies such as CoinBase, Gemini, Blockfi, etc., are some of the big names you’re quite familiar with today that have been serviced and backed by the Babel Finance group.
Founded by CEO Flex Yang, Babel Finance is one force that has been actively involved in Blockchain and cryptocurrency developments and maturity as we have it today. The company is also cofounded by Del Wang, both ex-workers of PWC (Hong Kong). The duo of Yang and Wang after coming into the Industrial and Commercial Bank of China (ICBC) have been behind loans in forms of Bitcoin, handed out to China Bitcoin mining firms to hedge these operators against fluctuation and sharp losses associated with Bitcoin price fluctuation as far as 2018. Also serving an industry that has no backing from established traditional financial institutions at the time proving once more that the duo through their financial firm are instrumental to the growth of the blockchain and Bitcoin ecosystem.
As earlier mentioned Babel Finance is one company responsible for the growth of top crypto firms today, many of whom are from the US, also acting as the digital asset custodian of CoinBase custody, it have been the bridge between the East (China) and the West (US) dominating the loan sector, having given out loan to the tune of over $380 million, outstanding as of March 2020, accelerating the growth of companies, providing liquidity for many DeFi based companies, is also responsible for the surge of the DeFi market as we have it today. In fact, 70 per cent of loans given out by Babel Finance may have been used for DeFi apps or greyscale projects.
Babel Finance is set to launch a suite of asset management products which includes Babel BTC Bullish Shark Fin, Babel BTC Bearish Shark Fin, Babel ETH Bullish Shark Fin, Babel BTC Bargain Hunting and Babel BTC Target Profit. These products will enable the company to transition into option trading, opening it up for retail traders. This move has cemented Babel Finance established dominance in crypto financial services making it the biggest out of Asia and the world leading options market by trade volume according to Bitcoin futures and option trading exchange Deribit.
In its quest to establish more dominance in both the traditional and blockchain finance market Babel Finance have launched a robust set of financial services that could be found in the traditional finance institutions, by launching Babel Private a novel service first of its kind, led by Babel Finance managing director-asset management, Tong Lei. The service will offer private banking services rivalling any known established traditional competition exclusive to high net worth cryptocurrency investors looking at hedging their risk against Bitcoin volatility and so far over 600 BTC ($60m) have been turned over to Babel Private for hedge services attesting to the popularity of the product amongst investors.
Bridging the existing gap between the traditional and cryptocurrency financial market, Babel Finance is actively working towards making available traditional financial market instruments, players and systems available to the cryptocurrency market, reducing volatility and increasing adoptions of the blockchain technology.