Unlike in traditional finance, it isn’t as easy as letting money sit in a savings account to earn interest on your crypto holdings. In order to see a return in the crypto space, holders have to go through a number of complicated steps to engage programs where they can loan out their crypto to borrowers with interest.
A popular form of DeFi is lending and borrowing, where investors can earn interest on their crypto holdings by lending their crypto out to borrowers in need of short-term capital. The borrowers pledge to provide a return on that loan. In order to ensure that lenders will get their money back, borrowers collateralize the loan with their own crypto. If the value of their collateral falls below a certain threshold, the borrower is automatically liquidated meaning they are forced to repay the loan and their collateral is sold.
Blueprint Finance, and other DeFi companies, seek to eliminate the complexities and maximize the returns that come from these programs with their own products. “The big premise here is, how do we give anybody, institutional down to pure retail, the easiest access and the best utility from their digital assets in terms of return on their capital?,” Roberts-Huntley told Fortune.
Concrete and Glow both produce revenue by charging a performance fee when an investor receives a return on their loan as well as fees for managing the lending and borrowing process.
Blueprint Finance will spend the money raised in this round on hiring new employees, engineering and marketing, Roberts-Huntley said.
Roberts-Huntley declined to disclose the company’s annual revenue and its valuation in this round. Blueprint Finance previously raised $7.5 million in 2024, bringing the company’s total funding to date to $17 million.
