Crypto lending startup BlockFi launches in California, now issuing cryptoasset-backed loans in 44 US states
We covered BlockFi back in July when Bitcoin king Mike Novogratz led $52 million investment in crypto asset lending startup. The funding was used to expand its lending platform outside the US and to support more digital assets. In July 2018, BlockFi raised $52.5M from Galaxy Digital Ventures LLC, a digital currency and blockchain technology investment firm founded by Mike Novogratz. This marked the industry’s first institutional investment in cryptoasset-backed loans. BlockFi’s existing investors, which include ConsenSys Ventures and PJC, also participated in the funding round.
Today, the New York-based startup announces today that it’s now lending to customers in California. This marks the expansion of their lending footprint to 44 states, making BlockFi the largest and most widely accessible crypto-to-USD lender in the U.S.
Founded by Zac Prince and Flori Marquez in 2017 and started lending in January 2018, the company offers the ability to leverage Bitcoin and Ether to obtain USD loans. BlockFi operates in over 40 U.S. states and is backed by leading investors including Galaxy Digital Ventures LLC, ConsenSys Ventures, and SoFi. BlockFi is a secured non-bank lender that offers USD loans to cryptoasset owners who collateralize the loan with their cryptoassets. Our products bring additional liquidity to the blockchain asset sector and meet needs of both individuals and institutions holding blockchain assets.
BlockFi holds clients’ Bitcoin and Ether with a registered custodian and issuing loans in USD to their bank accounts. Currently operating in a beta launch, lending in 35 US states to retail investors and companies. It’s mission is to provide liquidity, transparency and efficiency to digital financial markets by creating products that meet the needs of consumers and corporations across the globe. We build bridges between traditional finance and digital markets that enable growth for all participants.
“Our license approval in California and other states is a testament to the client-friendly design of our product and our robust compliance standards,” said BlockFi CEO and Co-Founder Zac Prince. “We have seen strong interest from across the U.S. and are excited to continue that growth to other markets.”
The company’s success has been highlighted by positive reviews from early clients, many of whom used their loan to invest in real estate, start businesses, or pay down higher-cost debt. BlockFi loans can be secured at interest rates ranging from 10-13.5%, the lowest cryptoasset-backed loan rates in the U.S. market.
“Our goal is to offer the most affordable and accessible lending product in the U.S. and beyond,” said Flori Marquez, Co-Founder and VP of Operations at BlockFi. “Our focus is on providing crypto investors the ability to do more with their investments, and this mindset will continue to drive our commitment to being the lowest cost provider.”
BlockFi is currently planning to grow their credit services into additional products and geographies. This includes support of more cryptoassets as collateral and the offering of new credit products, such as credit cards.
Leveraging a sophisticated infrastructure that integrates with multiple blockchains, we plan to expand our product set based on our retail and institutional client’s needs.