November 29, 2023

BlockFi landing platform will increase interest on deposits in Bitcoin and Ethereum

BlockFi, a company operating in the cryptocurrency lending market, announced an increase in interest rates from April 1deposit rates in two leading cryptocurrencies.

Users with a balance of up to 5 BTC will receive an annual return of 6% instead of the current 3.6%. For Ethereum owners (up to 500 ETH), the rate will increase to 4.5% from 2-3.6%.

No changes are foreseen for deposits in stablecoins GUSD and USDC - the previous 8.6% per annum.

«Our balance sheet is stronger than ever, and changes in institutional lending markets have created opportunities that expand our margins»,— BlockFi CEO Prince Zach explained.

According to him, during the fall of Bitcoin onlast week, to a minimum of $ 3,800, the BlockFi team decided not to liquidate collateral for less than $ 4,500. This move made it possible to maintain over 90% of the loan portfolio.

«The next few weeks will beinteresting as we see if assets like gold and bitcoin uncouple from the stock market. During periods of severe panic, each asset tends to be sold off. In 2008, after the passions had died down, gold rose very well. Let's see if Bitcoin experiences a similar cycle.- said Prince.

Recall that in September BlockFi lifted restrictions on the minimum deposit for users to earn income.

This year, the platform has attracted $ 30 million investment in a Series B financing round led by Valar Ventures PayPal co-founder Peter Thiel.