Crypto Lending Company BlockFi Launches Crypto Accounts With Bitcoin, Ethereum Support
Crypto wealth management and lending company BlockFi has launched new cryptocurrency accounts supporting Ethereum (ETH) and Bitcoin (BTC) bearing 6 percent annual interest paid monthly in crypto. The company announced the launch through a post published on its website on March 4.
In July last year, crypto-focused merchant bank Galaxy Digital led a $52.5 million fundraising round for BlockFi.
Furthermore, according to the March announcement, interest earned in BlockFi’s interest accounts compounds monthly resulting in an annual percentage yield of 6.2 percent. The accounts also reportedly are not entirely new, since they have been in private beta since the beginning of the current year and already hold over $10 million in assets.
The post also specifies that client assets are custodied at the Gemini Trust Company (the custodian of the crypto exchange lead by the Winklevoss Twins, Gemini), which is regulated by the New York State Department of Financial Services. The post also notes that clients are reportedly able to withdraw funds from such accounts at any time.
The yield, which is being distributed through such accounts, will be generated from institutional borrowers. The company also claims:
“BlockFi’s proprietary risk management system, which automatically initiates margin calls and liquidations to protect our customers’ assets, has a perfect zero-loss performance record since launching in 2017.”
As Cointelegraph has reported, cryptocurrency lending company Genesis Global Trading reportedly processed $1.114 billion in borrows and lends last year.