U.S. digital currency lending firm BlockFi has integrated support for fiat currencies. With this, it will allow users to purchase digital currencies and immediately start earning interest on it. The service is available to both domestic and international users.
The introduction of the wire transfers is the company’s first on-ramp channel for cash into its investment platform. It will allow users to purchase as little as $10 worth of digital currencies and start earning interest of up to 8.6% annual percentage yield in its BlockFi Interest Account.
Zac Prince, the founder and CEO of the New Jersey-based firm stated, “In an increasingly low-yield and volatile market, opportunities like earning 8.6% on stablecoin deposits with BlockFi stands out in the crypto sector. Adding support for inbound wires will facilitate increased liquidity on BlockFi’s platform, which flows through and improves liquidity in the broader crypto ecosystem. We’re excited to continue pursuing our ambitious product development roadmap and add more value for our clients.”
The wire transfers will be powered by Silvergate Bank through its Silvergate Exchange Network, a settlement layer and payment network that caters to most of the big names in digital currency.
With crypto lending becoming more prominent, BlockFi has continued to grow and now operates in over 100 countries. Its growth has attracted many investors and in its most recent funding round, the company raised $30 million. The Series B round, which took place last month, was led by Valar Ventures, the venture capital firm founded by celebrated tech investor Peter Thiel.
The firm intends to use the funding to fuel its international expansion, with the Asia-Pacific region being its immediate target. It plans on expanding to Singapore this year, aided by Hong Kong-based Hash Key, one of the investors in the latest funding round. It plans on launching automated clearing house payments in the second quarter of this year as well.
Digital currency lending has attracted several other firms as well, one of which is DrawBridge. The Chicago-based lending and investment firm sees lending as a critical sector if digital currency is to go mainstream. In an interview with CoinGeek, the CEO Jason Urban revealed that his firm is counting on its decades of experience in the traditional lending market to propel it to the top.
DrawBridge hit it off shortly after it started offering digital currency lending services, issuing a seven-figure loan secured by Bitcoin SV. The firm offers non-recourse loans which allow the borrower to retain BSV’s price appreciation while generating returns to repay their loan.
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