BlockFi, the crypto lending firm announced the rise of interest on the account rates of Bitcoin (BTC) and Ethereum (ETH) from April 1, 2020.
BlockFi Announces Rise Of Interest Rates
Zac Prince, CEO of BlockFi assured to provide a stable source of liquidity to the crypto users amid the coronavirus pandemic, which resulted in crashing of the global economy. He ensured that his company will facilitate the crypto movement during the bearish crypto markets.
The lending company decided to raise the profitability from Bitcoin and Ethereum by raising the interest rates on the accounts. The policy of the BlockFi states that users who have 0-5BTC holdings will be gaining 6% annual percentage yield, while 4.5% will be gained by those users who hold up to 500 ETH. Stablecoins like Gemini Dollar (GUSD) and USD Coin (USDC) will remain unchanged with 8.6% interest rates.
The Crypto Trading Firm To Accelerate Crypto Inflows
While bragging about the balance sheet of the company, Prince stated that diversion in institutional lending markets turned into a fortune for the BlockFi as the turnaround diversified their margins. The team of the company explained the recent move of raising the interest rate as an unexpected change which has the potential to attract the crypto investors. The crashed market of Bitcoin along with restrictions offered by the coronavirus, affected the markets remarkably but the BlockFi experienced limited liquidity which somehow signifies the credibility of the company.
The crypto lending firm also raised $30 million in a Series B funding round at the start of February. The platform which was founded in 2018 has a market cap of around $650 million in digital assets which would be enhanced after the recent announcement of increasing the interest rates.
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