The Litecoin Foundation is putting its capital to work, lending at interest through another cryptocurrency program.
The Foundation has tapped the Celsius Network, a blockchain-based crypto lending program, to become its preferred crypto wallet, Celsius Network CEO Alex Mashinsky told CoinDesk.
As part of the deal, the Foundation will allocate an undisclosed portion of its treasury to the Network.
Mashinsky said the endorsement by the Foundation validates the platform, which claims to give back up to 80 percent of its revenue to depositors.
"Litecoin being the first foundation to work with us and endorse us is a real milestone. It's a huge event," Mashinsky said.
Crypto custodian BitGo told CoinDesk they held some $1 billion in Celsius-based crypto deposits this past year, almost double the amount locked away in decentralized finance protocols according to DeFi Pulse.
The primary non-profit tasked to maintain the cryptocurrencies codebase, the Foundation has been actively seeking partnerships this past year.
The Foundation's financials came under scrutiny last quarter following disclosures concerning employee pay during Q1. Litecoin creator and Foundation managing director Charlie Lee told CoinDesk at the time he would continue to fund the Foundation until financially stable.
Lee told CoinDesk the interest-bearing deposits were the onus for signing up with Celsius, particularly for LTC holders.
Lee told CoinDesk the Foundation has no plans for taking out loans on collateral, a product Celsius offers.
Litecoin Foundation to Hold Undisclosed Treasury Sum with Crypto Lender
Publié le Sep 18, 2019
by Coindesk | Publié le Coinage
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