Blockfi has introduced interest bearing savings accounts to be used for the cryptos. The announcement was made on the 4th of March, 2019. Blockfi is a crypto-backed US Dollar lending platform.
The new saving platform would be referred to as Blockfi Interest Account – BIA. It can be remembered that BIA only began as a private beta service. At the moment, they are now available to the public who are able to store both the Ethereum (ETH) or the Bit Coin Core (BTC). In return, they will get back 6% annual interest. The interest is paid on a monthly basis in cryptocurrency.
New Savings Account That Earns ETH & BTC Holdings Returns
This new service by Blockfi is one of its own kind. The investors will have an opportunity to get an annual interest kept on the virtual currencies. The BIA – Blockfi Interest Account will earn the users 6.2% interest on an annual basis. The interest will be compounded on a monthly basis by just keeping Ethereum or Bitcoin in a particular account.
Blockfi was able to raise a total of $52.5 million last year to ensure that it remained running. The funding round was headed by Michael Novogratz, who heads the firm’S Galaxy Digital. The lending company was in august 2018 approved to offer its services in California. Blockfi has clarified that the recently introduced saving program was rolled out in private beta. The project was able to attract a total of $10 million worth of Bitcoin and Ethereum from institutional, corporate, as well as retail investors.
Joining The List Of Other Startups Offering Crypto Interests
There are also other startups that are offering their users compounded gains on ETH and BTC. Blockfi is not the only one. Last August, Ledgerx introduced an interest-bearing Bitcoin savings platform. Ledger is regulated by the US Commodity Futures Trading Commission – CFTC.
Based on a report that was offered by Ledgerx, the clients would be able to get an annualized return of close to 16%. This will occur even when the cryptocurrency market spaces are not appreciating. There is, however, one thing that differs the two. Ledgerx, unlike Blockfi, holds the digital assets and the accrued US Dollar assets are held by a US bank.
Compound is also another company that has ventured in this line. It is based in San Fransisco. Compound has come up with a trading platform that generates market for decentralized interest rates to be used by the virtual coin. This application applies ETH, BAT, as well as REP.
Blockfi Is The Best
According to the cofounder and deputy head of operations at Blockfi, Flori Marquez, this project is the best in the market. Its compliance programs are one of the things that have set it apart from the rest of other competitors.
The interest that is given to the customers is usually generated by its institutional borrowers and also from the company’s last fundraiser participants. From the time it was launched, Blockfi has also added GUSD and Litecoin for the cryptocurrency-backed loans.