Crypto asset lending firm Celsius Network surpassed $5.3 billion in assets under management after seeing rapid growth in 2020.
According to an announcement published on Jan. 20, Celsius said that $5.3 billion came after seeing a tenfold increase assets in 2020. The firm’s CEO, Alex Mashinsky, pointed to the maturation of cryptocurrencies as an asset class and inflation of the United States dollar as the causes.
“The crypto industry as a whole grew substantially in 2020,” said Celsius CEO Alex Mashinsky. . “As we see record numbers of institutions and retail users entering the space, they are looking for a store of value and yield to protect their assets from the debasement of the U.S. dollar. The record number of new dollars being printed by the [Federal Reserve] is making the savviest investors in the world allocate assets to Bitcoin.”
According to Mashinsky, Celsius’ growth is thanks to savers’ need for diversification and their lack of trust in financial institutions that are not transparent enough. He claims that the firm’s customers choose Celsius because they trust it and they are transparent.
He said that it gained 125,000 of those users since November—nearly one third of its more than 340,000 active users worldwide.
Celsius has distributed more than $200 million in crypto rewards among its community members and holds over 55,000 bitcoins, the firm reported. Celsius said it attributes much of its success to distributing up to 80% of its revenues back to its community.
This announcement follows a November report about Celsius having doubled its holdings in six months, at the time reaching $2.2 billion of assets under management.
“We created the concept of earning yield on your digital assets in kind or with a native token and launched the DeFi revolution,” said Mashinsky at the time, referring to decentralized finance. “Since then we have created more income for our customers than any one [sic] else in DeFi or CeFi, and we have no plans on slowing down any time soon.”