Blockfi Starts Interest Bearing Savings Accounts for Cryptocurrencies

According to a recent report, Blockfi has made it known that it has started a new savings program which is called the Blockfi Interest Account (BIA). The BIAs started as a private beta service but it is now available to the public who can store bitcoin core (BTC) and ethereum (ETH) and get 6% annual interest which is paid every month in the form of virtual currency.

Cryptocurrency-backed USD Lending Platform

Blockfi which is a cryptocurrency-backed USD lending platform has launched a new service which provides investors with annual interest on stored cryptocurrencies. The Blockfi Interest Account (BIA) allows its clients to earn 6.2% a year which is paid per month and it sums up by simply storing BTC or ETH in an account.

In July 2018, the platform raised a sum of $52.5 million in order to keep the company functioning. The funding round was led by Galaxy Digital which belongs to Michael Novogratz.

In August, the platform was granted the licence to do business in California. Blockfi has revealed that it’s newly launched BIA savings program was initially created in the private beta where it garnered BTC and ETH worth $10 million from retail, corporate, and institutional investors.

The Chief Executive Officer of Blockfi, Zac Prince said that:
“The launch of BIA is another significant step in Blockfi’s goal of becoming the go-to provider of financial services for crypto investors, ” “Lending and borrowing are readily available at the institutional level, and we’re excited to leverage our relationships and capital markets expertise to provide utility and yield on digital assets for all crypto investors,” he added.

Also, the BIA service is available to all the platform’s customers all over the globe and the Gemini Trust Company in New York which just completed a SOC 2 Type 1 security compliance review is in charge of the digital assets.

The Chief Risk Officer at Blockfi, Rene van Kesteren said that: “As crypto markets mature, greater liquidity will be constantly required to keep markets orderly,” “By providing a transparent yield on BTC and ETH, Blockfi will be a key part of the trading and market making an ecosystem.” he added.

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