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 is making changes to the interest paid on Bitcoin (BTC) and Ethereum (ETH) deposits.

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

BlockFi CEO Zack Prince said:

Last Thursday, March 12, the cryptocurrency market experienced strong downward price movements, resulting in very limited liquidity.The situation was analyzed by our team and risk management system, and we did not liquidate the collateral for loans in USD below the price of ~$4500, despite the fact that the market reached minimum values of ~$3800.As a result of the team's prudent actions during this period, our clients' capital was preserved, and we also liquidated a smaller percentage(<10%) of our total USD loan portfolio 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.