Cross River Bank Makes $250M Bet on Crypto-Backed Lending

Cross River Bank agreed to purchase up to $250 million of Figure's crypto-backed loans under a forward-flow agreement, a sign of growing institutional confidence in digital-asset-backed lending.

Under the agreement, Figure will originate and service the crypto-backed loans while Cross River purchases the receivables and earns interest on the underlying loans. Figure receives a servicing fee for managing the portfolio.

Noah Cooper, Cross River's chief investment officer and head of capital solutions group, said the loans are attractive because they are typically one-year loans backed by digital assets that can be liquidated quickly if collateral values fall below required thresholds.

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