Crypto lender BlockFi said on Tuesday that it has signed a deal with crypto exchange FTX for a $250 million revolving credit facility.
The credit line will be used by BlockFi to meet its obligations with client balances, and will be “used as needed,” CEO Zac Prince said in a Twitter thread.
The deal comes amid one of the worst crypto downturns in recent history, which has liquidated several major players in the market, including lender Celsius, and hedge fund Three Arrows Capital (3AC).
BlockFi was likely exposed to 3AC. The firm recently said it had liquidated a loan where a “large client” failed to meet its obligations on an overcollateralized margin loan.
Earlier this week, FTX also offered a $485 million loan to crypto broker Voyager Digital, according to a report by Bloomberg.