March 24, 2023

BlockFi will increase interest on deposits

BlockFi will increase interest on deposits

BlockFi's digital asset lending platform raises the interest rate on deposits in Bitcoin and Ethereum.

Starting April 1, BlockFi makes changes in the interest paid on deposits of Bitcoin (BTC) and Ethereum (ETH).

Now BlockFi deposit yield for those whoinvests up to 5 BTC, will be 6.0%. Previously, such customers received only 3.6% of the profits. ETH lenders will receive a rate increase of up to 4.5 percent on loans up to 500 ETH in exchange for 2% -3.6% per annum.

Rates on the Gemini Dollar (GUSD) and the USD (USDC) coin will remain at the same level - 8.6% per year.

BlockFi CEO Zack Prince said:

Last Thursday, March 12, in the cryptocurrency marketstrong downward price movements occurred, resulting in very limited liquidity. The situation was analyzed by our team and the risk management system, and we did not eliminate collateral for loans in US dollars below the price of ~ $ 4,500, despite the fact that the market reached a minimum value of ~ $ 3800. As a result of prudent actions by the team during this period, the capital of our customers was saved, and we also eliminated a smaller percentage (<10%) of our total loan portfolio in US dollars compared to other market participants.

Prince added that the new interest rate adjustments introduced by BlockFi reflect changes in the institutional lending markets, which have created opportunities to increase their margins.