How to unlock ‘massive potential’ as crypto lending comes back

Carson Cook and James Roth of Membrane Labs join the Empire podcast to discuss the state of lending and how custodians impact market growth

article-image

Membrane Labs CEO Carson Cook | DAS New York 2022 by Blockworks

share

This is a segment from the Empire newsletter. To read full editions, subscribe.


At Empire, we recently covered momentum investing strategies in crypto. Speaking of momentum…Empire’s Jason Yanowitz spoke to Carson Cook and James Roth of Membrane Labs for this week’s podcast. 

The three delved deep into what went wrong with crypto lending last cycle (shocker: a lot), and gave their thoughts on lending this cycle.

Putting aside the bad from the last cycle, Yanowitz asked if we might see something akin to the numbers that companies like Genesis were putting out (for example: half a billion in loan originations way back in the fourth quarter of 2021). 

Roth seemed to think so…as long as the markets behave.

“ I do think that, over time, you’ll have more and more money coming in, more and more safety being provided to folks around how they lend… and more providers stepping in like custodians, et cetera,” he said. 

But what really made me perk up — and perhaps this is because I just wrote about it — was Cook’s response, which is that it’s a momentum-driven game in crypto and not a fundamentals game…yet.

 ”As soon as markets go in one direction, the demand for leverage and lending exacerbates those moves. So they’re sort of the flywheel connects…As James was saying, if it gets going on the price movement side, you’re going to see a lot…I think you could blow through those numbers,” Cook said. 

The biggest way to grow the lending and credit parts of the market is through custodians, Cook continued. That’s how you unlock “massive potential” and encourage folks to move out of qualified custody or their cold wallets into the market. 

We’re still early here, and the medium to longer-term issue is not necessarily the markets (though they’ll always have an impact). It goes back to a very familiar subject: regulatory clarity. 

Man, I can’t wait ‘til I don’t have to write those two little words again. But for now, we still have a long haul ahead.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /