Bitcoin lending startup Zest Protocol has secured $3.5
million in a funding round led by venture capitalist Tim Draper, Reuters
reported. The investment, joined by notable backers including Binance Labs and
Flow Traders, signals growing confidence in the crypto lending industry despite
regulatory scrutiny.
Bitcoin Lending Innovation
Unlike traditional lending platforms, the six-employee
startup operates a decentralized model, enabling peer-to-peer transactions
without intermediaries. Zest Protocol aims to disrupt the Bitcoin lending
landscape by offering users the ability to lend out their Bitcoin or borrow
against it, providing an alternative to selling and allowing them to earn
passive income.
Zest’s Founder Tycho Onnasch emphasized the platform’s
divergence from the regulatory targets amid regulatory challenges from the US
Securities and Exchange Commission (SEC). The company plans to expand its
platform with the new funding, aiming for a broader rollout later this year.
Onnasch underscored the company’s conservative approach to yield generation,
signaling a departure from the high-yield offerings prevalent in the early days
of crypto.
Others investors who participated in the funding round
include Binance Labs and Flow Traders. Draper, known for his early investments
in transformative tech ventures like SpaceX, Tesla, and Coinbase, is optimistic
about the adoption of Bitcoin. His support highlights the emergence of bitcoin
as an institutional asset and the growing ecosystem surrounding it.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
