Crypto Lending Startup BlockFi Raises $18.3M USD In Series A Fundingbr>
Crypto lending platform BlockFi has raised $18.3 million in Series A funding round led by FinTech-focused VC firm Valar Venture. The round also saw participation from Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Akuna Capital, Avon Ventures, Susquehanna, CMT Digital, Morgan Creek and PJC.
Based in New York, BlockFi is a non-bank lender that offers USD loans to cryptocurrency owners. It claims to offer “the lowest interest rates and most flexible product in the crypto-to-USD lending market.” The company currently services customers worldwide, including 46 US states.
The company will use latest funding to add new products to its existing platform, which includes interest-earning accounts for bitcoin and crypto-backed USD loans.
“We’re excited to continue development at BlockFi that will bring us closer to our vision of a world where access to wealth-building financial products and services are not limited by geography or an individual’s net worth,” said BlockFi CEO & Founder Zac Prince. “Our talented team and strategic backers will continue to drive the crypto financial services infrastructure forward to facilitate adoption and value creation in the crypto ecosystem.”
According to BlockFi, it was the first company to receive institutional funding for crypto-backed USD loans, in the form of a $50 million lending facility from Galaxy Digital. BlockFi’s second product reportedly enabled crypto investors to earn interest on their assets and participate in the rapidly growing crypto-lending market.
“For the first time in history, we are able to leverage the borderless nature of crypto to enhance the value, speed and reach of financial products,” said BlockFi Co-Founder Flori Marquez. “We differentiated ourselves since inception by focusing on building a compliance-focused platform that aims to bridge blockchain technology with the existing financial systems of the world.”