March 4, 2024

Credit startup BlockFi will launch a trading platform

New York startup BlockFi, which offers loans secured by cryptocurrencies, announced the launch of its ownBlockFi Trading platform that allows you to trade digital assets.

“Before that, we provided customers with products,which are already used by investors who invest in other asset classes. Thanks to the launch of BlockFi Trading, we are making a huge step towards connecting new investors to the ecosystem, ”said Zac Prince, BlockFi founder and CEO

BlockFi provides secured loanscryptocurrencies in the amount of $ 2,000 to $ 100 million. If investors pay the company on time, they get their cryptocurrencies back. If financial obligations are not fulfilled, then BlockFi sells digital assets of borrowers and thus compensates for its losses.

BlockFi customers will now have access to anotherfunction - purchase of bitcoin or ether for Gemini Dollar (GUSD) on customers' accounts. BlockFi Trading platform, on which three assets will initially be available - BTC, ETH and GUSD - is aimed at retail and institutional investors.

Moreover, commissions for transactions onthe platform is not provided. The project organizers plan to make a profit by selling information about customer transactions to large institutional cryptocurrency firms that will act as market makers and provide liquidity.

BlockFi also intends to increase the list of optionsfor users who want to receive interest payments on digital assets. Starting December 11, customers will be able to make deposits and buy USDC and LTC. In addition, in the first quarter of next year, it is planned to launch crypto-fiat trading, and in the second - the issuance of a credit card, which allows you to receive rewards in cryptocurrencies.

Cryptocurrency purchased on the platform will beautomatically credited to deposit accounts with interest payments. The startup has already received investments from companies such as Galaxy Capital, Winklevoss Capital and ConsenSys Ventures, raising a total of $ 79 million. Custody services of the company are provided by the American cryptocurrency exchange Gemini.

For the lawful implementation of its activities inin anticipation of the launch of the platform, BlockFi received a license from the Financial Crimes Enforcement Network (FinCen) to provide money transfer services, and also expanded its state licensing strategy.