Celsius CEO Alex Mashinsky recently proposed revamping the failed crypto lending business as a digital asset custody firm, according to a New York Times report.
Celsius is one of a handful of crypto companies to file for bankruptcy protection in recent months after falling victim to the market crash and imploding counterparties. It’s still working through how to make depositors – who bet on Celsius’ high yields and lost – whole.
Pivoting to custody would give Celsius a new revenue stream by collecting fees from depositors, according to the New York Times, which said employees were skeptical of Mashinsky’s “Kelvin '' codenamed plan when he pitched it on Sept. 8.
Whether any depositors would show up is another matter.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.