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BlockFi

BlockFi

BlockFi is a blockchain platform for high-interest crypto accounts and low-cost credit products.

BlockFi develops a blockchain-driven wealth management platform for crypto investors.

BlockFi was founded in 2017 by Zac Prince and Flori Marquez. The mission being to provide credit services to markets that currently have limited access to products such as simple savings accounts.

BlockFi’s unique proposition and what sets it apart from other crypto asset service providers is that the company pairs market-leading rates with institutional-quality benefits. The company is the only independent lender with institutional backing from investors that include Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi and Coinbase Ventures.

Cryptocurrency holders with BlockFi accounts can earn interest on Bitcoin and stablecoins. Here are some of the benefits of having an interest earning portfolio with BlockFi:

  • It provides investors with moderate returns on their digital assets (mainly Bitcoin, Ethereum, and GUSD).
  • Your digital assets are said to be very secure; the Gemini Trust Company secures all crypto held by BlockFi under the regulation of the New York Department of Financial Services.
  • It is readily available in any country; except those that have been sanctioned or are on a watch list.
  • Easy withdrawal at any time. There is one free withdrawal available to users monthly.
  • Ease of access and registration.

With a juicy interest rate and one which is quite competitive in both the crypto and traditional currency market, the BlockFi interest account seems very attractive. BlockFi also provides loans to interested parties which are obtained from the borrowed digital assets. This guide is to give a brief overview of BlockFi, its security, and how it operates.

How BlockFi makes Profit?

BlockFi makes its money by taking crypto investments with the promise of interest on the money it lends to interested parties through the platform. Ecosystem participants include:

  • Traders and investment funds: These traders or brokerage firms require leverage in the financial market. They lend these digital assets as a hedge against price fluctuations in these volatile digital asset markets.
  • Third-party market makers: These are individuals/entities that link buyers with sellers who prefer anonymity from public trading platforms. Usually, they are required to hold digital assets for when the buyers or sellers come around. Understanding the cost and risk involved in owning the digital assets, the third-party market makers prefer to lend on BlockFi.
  • Other forms of businesses that offer liquidity pools to clients.

Timeline

February 14, 2022
Peter Thiel-backed crypto start-up BlockFi to pay $100 million in settlement with SEC, 32 states
August 2021
BlockFi raises a $500,000,000 series E round from AVG Blockchain and Rose Park Advisors.
July 6, 2021
BlockFi announces that its much-anticipated bitcoin rewards credit card will be rolled out to select customers on its US waiting list.
April 9, 2021
BlockFi announces that Joseph Hickey has been named Global Head of Trading.
March 11, 2021
BlockFi raises $350,000,000 in Series D funding from Bain Capital Ventures, Susquehanna Government Products, Valar Ventures, Pomp Investments, Tiger Global Management, Paradigm, Jump Capital, and Breyer Capital.
March 11, 2021
BlockFi raises a $350,000,000 series D round from Pacific Century Group, ParaFi Capital, Paradigm, Point Judith Capital, Pomp Investments, Susquehanna Government Products, The Venture Collective, Third Prime, Tiger Global Management and Valar Ventures.
February 17, 2021
BlockFi appoints Lei Lei as Director of Real Money Clients, Institutional Sales to cover endowments, pension funds, asset managers, insurance companies, corporate entities, and sovereign wealth funds.
August 21, 2020
BlockFi raises a $50,000,000 series C round from CMT Digital, Castle Island Ventures, HashKey Capital, Kenetic Capital, Matthew Dellavedova, Michael Antonov, Morgan Creek Capital Management, SCB 10X, Valar Ventures and Winklevoss Capital Management.
February 13, 2020
BlockFi raises a $30,000,000 series B round.
February 13, 2020
BlockFi raises a $30,000,000 series B round from Valar Ventures.

Funding Rounds

Patents

Further Resources

Title
Author
Link
Type
Date

BlockFi: Loans Backed By Crypto 🔗 Interview W/ Zac Prince

September 5, 2018

News

Title
Author
Date
Publisher
Description
September 5, 2021
The Economic Times
In recent months, top officials from the Federal Reserve and other banking regulators have urgently begun what they are calling a "crypto sprint" to try to catch up with the rapid changes and figure out how to curb the potential dangers from an emerging industry whose short history has been marked as much by high-stakes speculation as by technological advances.
JD Alois
July 23, 2021
Crowdfund Insider
Click HERE to find out ⭐ Texas State Securities Board Guns for BlockFi and Interest Bearing Accounts. | Crowdfund Insider: Global Fintech News, including Crowdfunding, Blockchain and more.
Michael McSweeney
July 22, 2021
The Block
Securities regulators in the U.S. states of Alabama and Texas have set the stage for potential cease-and-desists against crypto startup BlockFi for its Interest Account product.
Frank Chaparro
July 20, 2021
The Block
Popular crypto trading and lending platform BlockFi has been ordered by the New Jersey Bureau of Securities to suspend accepting new interest account
Frank Chaparro
July 6, 2021
The Block
BlockFi's bitcoin rewards credit card is being shipped out to some users on its waiting list, the firm said Tuesday.
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References

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