The US-based crypto lending site, BlockFi, adds support for cash via bank transfers to buy cryptocurrency. Previously, the option for cash was not available for customers, but now users will be able to purchase digital assets and earn an interest rate on investments.
On March 10, BlockFi informs its users about the newly added support for bank transfers. The wire transfers will support by the publicly-traded company Silvergate. California-based bank Silvergate is a bank specialized in providing services to fintech and crypto-related companies.
8.6% Interest on Investment
The cash on-ramp service is available both for the US and international users. The customers will be able to earn an interest rate of up to 8.6% yearly. The new initiative by a giant crypto lender will bridge the traditional banks with digital services.
The CEO and founder of BlockFi, Zac Prince, said:
‘’In an increasingly low-yield and volatile market, opportunities like earning 8.6% on stablecoin deposits with BlockFi stands out in the crypto sector. Adding support for inbound wires will facilitate increased liquidity on BlockFi’s platform, which flows through and improves liquidity in the broader crypto ecosystem.’’
According to Prince, Bitcoin is the top-performing coin on the site. Besides Bitcoin, Eth is also popular on platform and then followed by stablecoins such as USD Coin (USDC). While talking to Cointelegraph, Prince said,’’ We’ve found that older generations are more likely to invest in stablecoins, as they’re more risk-averse, while our Gen Z, Millennial and Gen X clients are more likely to own Bitcoin and Ethereum.’’
‘’We’re excited to continue pursuing our ambitious product development roadmap and add more value to our clients,’’ he added further.
Company has raised $650M so far
In its last round in February 2020, the company has raised $30 million backed by US-based Valar Ventures and supported by CMT Digital, Purple Arch Ventures, Hong Kong-based HashKey Capital, Avon Ventures, Akuna Capital, and others. The company also disclosed last month that they had possession of assets worth $650 million.
BlockFi has recently obtained a license from the state of Florida. The users from Florida can easily get benefits from the company’s crypto services.