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BlockFi Includes Litecoin and USDC in Lending Portfolio

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BlockFi

BlockFi

Cryptocurrency has gone through a lot of new developments over the past few months and today, cryptocurrency lending company BlockFi made a major new announcement. The company, which operates its own platform, announced today that it has added support for two more digital assets.

Major Expansion

The company announced that from now on, loans can be disbursed in the form of Litecoin as well as in the stablecoin USDC. USDC is backed by the United States Dollar. This is a significant development for Litecoin and USDC, as both those cryptocurrencies will now be made available to a wider pool of customers.

In addition to the digital assets added today, the other cryptocurrencies in which loans are made from the BlockFi platform include Gemini Dollar, Ethereum, and Bitcoin. However, it is important to note that the platform is not only meant for lending purposes. Customers will also be able to trade in these cryptocurrencies and earn interest on what they store in their wallets. In order to earn interest, a customer would have to create a BlockFi Interest Account and get to earn monthly compound interest on their holdings.

The annual percentage rate for Litecoin holdings has been pegged at 3.8%, while the same for USDC has been set at 8.6%. This marks another major development for not only these two digital assets but also for the entire crypto sector. Litecoin is one of the biggest cryptocurrencies in the world, and the fact that the availability of the coin is expanding is a major development for the token’s fans.

>> Libra Exec Boasts Project’s Benefits Over Bitcoin at CES 2020

While the crypto industry has had its ups and downs, the crypto lending industry has grown at a fair clip. In fact, it has been one of the best performers in the entire industry. Much of that is due to the bearish patterns in the market in 2018 and the latter half of 2019. BlockFi has been one of the beneficiaries of the market as well.

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BlockFi Raises Over $18 Million USD in Funding Round

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BlockFi

BlockFi

US cryptocurrency lending startup BlockFi has raised $18.3 million USD in a funding round led by Valar Ventures, the company announced on Tuesday.

BlockFi is the first company of its kind to receive institutional funding for crypto-based loans in US dollars, in the form of a $50 million lending facility from Galaxy Digital. The new capital will reportedly be used to expand the array of products on BlockFi’s existing platform that includes interest-earning accounts for Bitcoin (BTC) and crypto-backed USD loans. BlockFi also plans on using the investment to double its number of employees to 60 this year. Earlier this year, BlockFi announced it had over $53 million in customer crypto assets under management.

Valar, which was founded by PayPal co-founder Peter Thiel, makes its first venture into crypto investment with this Series A funding round, which also saw participation from numerous other crypto-focused investors such as Winklevoss Capital and Galaxy Digital. Valar is one of three venture funds co-founded by Mr. Thiel, who has previously invested in prominent Fintech companies like Transferwise and N26.

“What’s very interesting about BlockFi is how they are bringing traditional financial services to this world,” said Andrew McCormack, Valar’s co-founder. “As the cryptocurrency markets evolve, you will start to see more and more companies that provide a lot of block-and-tackling that traditional bank or other market makers have provided in the fiat world for centuries.”

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In March, BlockFi unveiled a savings account that promises as much as 6.2% in annual returns and has since gathered about $250 million in assets. The two-year-old company also offers crypto-backed loans, allowing clients to deposit a minimum of $20,000 in digital currency in exchange for fiat loans.

BlockFi has come under some controversy in recent months, mostly due to the advertised interest rate on its deposit accounts. The company claims to offer 6.2% annual interest on deposits; however, due to the product’s terms of service, the company can modify this at its discretion.

Featured image: DepositPhotos © stevanovicigor

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