The Litecoin Foundation has finally decided to put its idle capital in circulation via the Celsius Network, a cryptocurrency lending program based on Blockchain.
Celcius Network Alex Mashinsky announced the new partnership. An undisclosed amount from the foundation’s treasury would be available for lending for LTC consumers. An annual interest rate of up to 10.53% would be given to LTC crypto holders while those who would apply for a loan would have to pay it back with 4.95% annual interest.
Mashinsky said that the foundation’s decision to tap their crypto wallet marks a threshold for the entire Celsius Network. He added that it is the first time the platform received a significant endorsement, a proof that the general community is slowly recognizing its significance. As a form of giving back to the holders, the Litecoin Foundation pledged that 80% of the lending revenue would go to the depositors.
Notably, in 2018, the Celsius Network was able to raise $50 million in an ICO (initial coin offering). This year, the platform claims to have completed loans worth more than $2 billion. Furthermore, the lending program holds $350 million annual deposits from customers and had already issued interest worth $3.5 million.
The crypto custodian claimed that they had deposited around $1 billion to the Celsius Network’s crypto platform. According to DeFi Pulse, this amount is double than what decentralized finance protocols hold.
Notably, the Litecoin Foundation had been seeking industry partners to maintain its non-profit crypto codebase since last year. Before the Celsius Network, the foundation had signed a partnership with the Miami Dolphins.
The Litecoin Foundation’s financial situation was put in the spotlight when confidential information about employee pay was disclosed during the first quarter. Charlie Lee, the creator and managing director, told the press that he would fund the foundation until it gains back financial stability.
Lee also mentioned the reason why the foundation decided to explore the Celsius Network’s lending program. According to him, one of the main objectives of the LF is to help LTC holders maximize the potential of their crypto holdings. Ideally, the Celsius Network is capable of satisfying that goal.
The foundation’s creator ended his statement by confirming that they are still in talks with the network about the lending plans. Currently, they have no intentions of taking out loans on collateral, something that the Celsius Network offers.