UPDATED 20:03 EST / FEBRUARY 13 2020

BLOCKCHAIN

Cryptocurrency lending firm BlockFi raises $30M to expand product offerings

Cryptocurrency lending firm BlockFi Lending LLC said today it has raised $30 million in new funding to hire more people and expand its current range of product offerings.

The Series B round was led by Valar Ventures and included Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Winklevoss Capital, Arrington XRP Capital and HashKey Capital.

Founded in 2017, BlockFi operates as a nonbank lender that offers crypto-backed loans that allow investors to borrow against their cryptocurrency holdings as equity. The loans allow applicants to unlock up to 50% of the value of their assets in U.S. dollars and can be used for any purpose, from paying off credit card debt through to buying a home.

BlockFi notes that businesses can use the funds to help them with payroll financing and business expansion. The company accepts collateral in bitcoin, Ethereum or Litecoin.

The money the company lends comes from allowing investors to deposit their cryptocurrency holdings in an interest-bearing account that promises returns of up to 8.6% annually. Deposits can be made in bitcoin, Ethereum, Litecoin, USD Coin and Gemini Dollar.

In addition to lending money and offering interest on deposits, BlockFi also offers a cryptocurrency trading service that allows users to buy, sell and trade with support for the same currencies as accepted as deposits.

Having last raised $18.3 million in venture capital from Valar Ventures in August, BlockFi has grown since that time, with more than $650 million in assets on the platform and a claimed 0% loss rate across its loan portfolio since the company began lending in January 2018. Revenue is said to have grown 20fold during 2019.

“At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth,” Zac Prince, co-founder and chief executive officer and co-founder, said in a statement. “As our platform continues to mature, BlockFi clients benefit from more diverse products and in turn, greater financial empowerment.”

Including the new funding, BlockFi has raised $108.7 million to date.

Image: BlockFi

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