Altman's Meanwhile Group Launches Bitcoin Credit Fund for Institutions

• Meanwhile Group Launches Bitcoin Private Credit Fund
• Attracting Institutional Investors with a Conservative Yield
• Private Credit in Traditional and Crypto Markets
• Fundraising and Earlier Investments
• Future Crypto-Denominated Financial Offerings

Meanwhile Group Launches Bitcoin Private Credit Fund

Meanwhile Group, a Bitcoin$42,260 -0.64%-centric financial services company supported by OpenAI CEO Sam Altman, has initiated a private credit fund based on bitcoin (BTC), as declared by the company on Thursday.

Attracting Institutional Investors with a Conservative Yield

The fund, which operates on a closed-end basis, aims to attract institutional investors by presenting a conservative 5% yield in bitcoin terms, according to the official announcement. Contributions to the fund will be made in U.S. dollars and then converted into bitcoin. Transaction fees associated with the fund will also be in the form of bitcoin.

Private Credit in Traditional and Crypto Markets

Private credit - the practice of non-bank institutions extending loans to businesses and individuals - is already a significant sector in the conventional financial markets. Market analytics firm BlackRock predicts this sector will expand to $3.5 trillion by 2028.

Zac Townsend, co-founder and CEO of Meanwhile Group, emphasized the importance of strong capital markets for the inevitable flourishing of the Bitcoin economy. He believes that this private credit fund provides a unique potential for institutional investors to realize the full value of their BTC investments without forfeiting their ownership, thereby optimizing returns.

Fundraising and Earlier Investments

Reportedly, the fund is targeting to raise $100 million from investors. Earlier this year, Meanwhile Group established Meanwhile Insurance, a Bitcoin-based, AI-assisted life insurance venture. This innovative endeavor managed to gather $19 million in an investment round, with notable investors including OpenSam Altman and Google's AI-centric arm, Gradient Ventures.

Future Crypto-Denominated Financial Offerings

In addition to the bitcoin private credit fund, Meanwhile Group also plans to expand its portfolio of crypto-denominated financial services. This diversified range would comprise of offerings such as term life insurance and accidental death coverage in BTC terms.

Edited by Jonathan Stoker