Want to earn interest on your money? Or do you need a loan? Learn how to earn passive income with your cryptocurrencies or how to take out a crypto backed loan at BlockFi. We’ll also outline some of the risks associated with these types of products.
Earn compound interest on your cryptocurrencies
Crypto backed loans in USD
Currently traditional banks are providing nearly 0.1% interest for savings accounts. However, BlockFi is a platform where you may earn up to 8.6% interest on your funds. Anyone with an account will not need to have a large sum of money to earn this interest rate. BlockFi is a platform that provides high interest for custodied cryptocurrency while also offering lending and borrowing plans. BlockFi is considered to be a secured non-bank lender that provides loans that are backed by crypto assets and US Dollars. BlockFi was launched in August 2017 and operates in most US states. Cryptocurrencies that may be used as collateral include: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Gemini's dollar (GUSD), and have plans to include additional crypto assets. Zac Prince and Flori Marquez founded BlockFi in order to redefine banking by connecting traditional finance with blockchain technology. The firm has institutional support from investors like: Valar Ventures, Galaxy Digital, Fidelity, Akuna Money, SoFi, and Coinbase Ventures.
BlockFi only offers deposits and withdrawals via wire transfer.
BlockFi serves individual and institutional accounts for most countries, and is available in most US states.
Subject to a 24-hour safety hold, you may withdraw your deposits at any time. BlockFi offers one free withdrawal per month per customer, followed by charges of either $0.25 USD, 0.0025 BTC or 0.0015 ETH. Due to certain regulations, BlockFi creates withdrawal limits for each account holder.
“It's simple and BlockFi has made a very good impression. Good customer service, simple website. Excellent transfer possibility to deposit USD from a bank which is converted to GUSD which can be converted for free to USDC, great rates”.
“They are definitely going to fuel the next wave of crypto adoption by creating more use cases for cryptocurrency assets.”
“BlockFi provides eligible individuals and corporations with an alternative way to raise capital and allows them to generate funds without having to liquidate their crypto holdings. The company is transparent, and regulatory compliant, and also provides financial products with reasonable fees and interest rates.”
All assets with BlockFi are safely stored in a cold wallet that is generated by Gemini. The exchange must follow all guidelines under the New York Banking Law by the New York State Department of Financial Services. It is a regulatory service and adheres to strict capital reserve criteria and other standards of banking compliance. Gemini also has a digital asset insurance policy and, through both its exchange and custodian network, is SOC 2 Category 1 security compliant. To keep customer accounts secure, BlockFi employs a range of features. Two-factor authentication and all passwords are encrypted along with personal and confidential data. It should be noted that in May, 2020, BlockFi’s systems were hacked. However, no funds were lost.
All BlockFi assets are stored in a cold storage wallet generated by Gemini. The exchange is licensed by the New York State Department of Financial Services.
Yes, BlockFi recently launched an app for iOS and Android.
Yes, BlockFi allows its users to withdraw funds by wire transfer.
Yes, its primary custodian is Gemini. The Gemini exchange is a licensed New York trust company that is subject to cybersecurity regulations and monitored by the New York Department of Financial Services.
BlockFi earns income, like a traditional bank, by borrowing crypto assets from its users and then lending those assets to other borrowers.
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