Crypto Lending Firm BlockFi Receives License To Operate In Californiabr>
Crypto lending platform BlockFi has received approval to operate in the state of California. The latest expansion leads to the crypto-to-USD lender being available in 44 US states.
Based in New York, BlockFi is a non-bank lender that offers USD loans to cryptocurrency owners. It is only accepting loans backed by either bitcoin or ethereum and are holding clients’ cryptoassets with a registered custodian and issuing loans in USD to their bank accounts. BlockFi loans can be secured at interest rates ranging from 10-13.5%, the lowest cryptoasset-backed loan rates in the US market.
The company believes that the California license shows there’s a lot of interest stemming from the US for a crypto-backed lending platform that follows regulatory compliance standards.
“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 US and are excited to continue that growth to other markets.”
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.
“Our goal is to offer the most affordable and accessible lending product in the US 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.”
Last month, BlockFi raised $52.5 million in a fundraising round led by Mike Novogratz’s Galaxy Digital. Novogratz said at the time that “a robust lending market is the keystone for financial systems and BlockFi’s institutional approach and deep lending expertise were key drivers in our decision to partner with them.”