The Litecoin Foundation deposits a portion of its funds with Chelsea, a cryptocurrency lender.

Singapore-based non-profit Litecoin Foundation, led by Litecoin founder Charlie Lee, has invested an undisclosed portion of its capital in cryptocurrency lender and loan provider Celsius, Coindesk reports. reported. It is hoped that this move will open up another revenue stream to further support the foundation’s operations.

Chelsea was recently announced as the ‘title sponsor’ of the 2019 Litecoin Summit in Las Vegas next month, and this appears to be part of a new relationship between the two, with the foundation naming Chelsea its ‘preferred cryptocurrency wallet’ along with the Chelsea Network. . CEO Alex Masinsk said:

“It is a true milestone for Litecoin to become the first foundation to partner with us and support us. “This is a very big event.” “This is the first time we can say that the general community recognizes the usefulness of Chelsea.”

Lee reiterated the following in his statement:

“We chose Chelsea as LF’s preferred wallet of interest because we are always interested in helping LTC holders leverage new use cases for their assets. What better way to show confidence in your product than allocating a portion of LF funds?”

Chelsea raised $50 million through an ICO, CEL Token, in 2018. Although this is an optional service, the platform provides a greater return on investment. In 2019, Chelsea processed more than $2 billion in loans, held more than $350 million in customer funds, and returned $3.5 million in interest payments.

Moreover, cryptocurrency custodian BitGo told Coindesk that it had about $1 billion stored in “Celsius-based cryptocurrency deposits” last year. According to the company’s website, Celcius holdings can earn up to 10% interest, but its value fluctuates depending on market conditions and is currently ~5% for Litecoin.

The foundation has been criticized by some for its spending figures and finances, but Lee remains firm that he will continue to support the foundation in the future. It’s unclear whether this partnership is one step toward a more self-sustainable foundation, although Lee said he was open-minded:

“As our relationship with Celsius evolves, we are certainly ready to explore new opportunities.”