Bitcoin developer Blockstream Corp. has secured a multi-billion dollar investment to roll out three new institutional-grade investment funds—two of which will fuel crypto lending, according to Bloomberg.

Blockstream first revealed its intentions in January, outlining three distinct funds. One will provide Bitcoin-backed loans. Another will offer crypto-backed borrowing in U.S. dollars. The third will operate like a hedge fund.

According to a source with knowledge of the plans, all three funds are set to launch on April 1, with the two lending funds ready for borrowers. Blockstream is also planning to accept additional external capital starting July 1.

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Crypto lending has become a cornerstone of the decentralized finance (DeFi) sector, allowing cryptocurrency holders to generate passive income by lending their assets in exchange for interest.

However, the 2022 collapse of FTX severely disrupted the industry, leading to liquidity crises and eroding trust in lending platforms. Several major lenders, including BlockFi and Celsius, faced insolvency, further dampening market confidence.

With Bitcoin prices soaring and U.S. regulators adopting a more favorable stance on digital assets, the sector is regaining momentum. Both centralized and decentralized lending platforms are witnessing renewed activity as investors seek liquidity without offloading their holdings, signaling a potential revival for crypto lending.