Crypto Lending Startup BlockFi Raises $4M USD From Novogratz’s Galaxy Digital, Morgan Creek And Othersbr>
Crypto lending platform BlockFi has closed a $4 million convertible debt fundraising round led by Akuna Capital. Other investors include Susquehanna Government Products, CMT Digital, Recruit Strategic Partners, Galaxy Digital Ventures, Morgan Creek Digital, and Devonshire Investors, the private investment arm of the owners of Fidelity Investments.
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 be using the new round of funding to launch new products, including an interest-earning crypto savings account, a portfolio line-of-credit, and crypto-backed credit cards. According to BlockFi, the savings account will be rolled out in Q1 2019. A portion of the funding will also be used to expand the team.
“We’re thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants,” said Zac Prince, CEO of BlockFi. “Our pragmatic approach to fundraising and team building has enabled us to continue growing through negative market conditions. We are excited to execute on plans to bring new products to market and continue to add more value for our clients.”
Toby Allen, head of digital assets at Akuna Capital, said that the BlockFi team is providing a critical piece of financial services infrastructure in the crypto space.
“Companies like BlockFi are representative of the high-quality development that will facilitate continued consumer adoption,” Allen said.
The latest funding came after BlockFi announced in July of this year that it raised $52.5 million in a fundraising round led by Mike Novogratz’s Galaxy Digital Ventures.