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In a move that could reshape the Bitcoin lending market, Stone Ridge subsidiary NYDIG is gearing up to channel one of the biggest capital reservoirs in traditional finance—insurance float—into BTC-backed loans. The news, detailed in the 2024 Investor Letter from Stone Ridge CEO Ross Stevens, immediately attracted attention across the industry after its publication on December 30.

Marathon Digital advisor Sam Callahan, commenting on X, framed the impact succinctly: “NYDIG is about to unlock one of the largest investable pools of capital in the entire financial system—insurance float—and channel it into Bitcoin-backed loans. This is a big deal.” According to Callahan, improved lending efficiency could lead to “lower loan costs,” reduced selling pressure on Bitcoin, and ultimately “increased scarcity” and “higher demand and price,” fueling more institutional interest and broader adoption.

In a move that could reshape the Bitcoin lending market, Stone Ridge subsidiary NYDIG is gearing up to channel one of the biggest capital reservoirs in traditional finance—insurance float—into BTC-backed loans. The news, detailed in the 2024 Investor Letter from Stone Ridge CEO Ross Stevens, immediately attracted attention across the industry after its publication on December 30.

Marathon Digital advisor Sam Callahan, commenting on X, framed the impact succinctly: “NYDIG is about to unlock one of the largest investable pools of capital in the entire financial system—insurance float—and channel it into Bitcoin-backed loans. This is a big deal.” According to Callahan, improved lending efficiency could lead to “lower loan costs,” reduced selling pressure on Bitcoin, and ultimately “increased scarcity” and “higher demand and price,” fueling more institutional interest and broader adoption.
https://bitcoinist.com/bitcoin-nydig-unlock-largest-capital-pool-finance/