In the second quarter of 2021, venture capital investment into cryptocurrency and blockchain start-ups totaled $14 billion, according to data from PitchBook provided to CNBC.
Interest in cryptocurrencies, particularly in bitcoin, rose this year as institutional investors and large corporations jumped in.
They then lend out the money from a pool of deposits to other entities at higher interest rates and make money from that spread.
“I think regulation is always a challenge for this industry because it’s a very global industry,” Wu said.