Crypto investment and market-making firm Keyrock is acquiring Blockfills, a crypto lending firm that entered bankruptcy proceedings. The acquisition price and assumed liabilities have not been publicly disclosed. Keyrock, known primarily as a liquidity provider and algorithmic market maker, would gain Blockfills' client relationships and potentially its lending book through the transaction.
For the crypto repo desk, Blockfills had relationships with institutional crypto participants that may overlap with Armada's counterparty universe, including market makers and hedge funds. Keyrock's absorption of Blockfills warrants a review of any counterparties that relied on Blockfills for credit or liquidity, and an updated credit assessment of Keyrock as it integrates a distressed book. Flag to legal counsel if any active Armada counterparties had Blockfills exposure.