BlockFi, a crypto-to-USD lender is opening up its services to the state of California. The move marks the 44th state in the United States in which the loan service will operate, positioning itself as the largest crypto-to-USD lending servicer in the country.
Crypto Loans Across Industries
BlockFi has been used as the launching pad for clients in a number of industries, including by those who have applied their loan to start a business, invest in real estate or diminish costly debts. These loans have provided solutions for customers without their having to sell off their crypto assets.
Instead, cryptocurrency is used as collateral in BlockFi loans. The initial loan duration is 12 months and the loan to value is at 35%. The loans carry interest rates in the range of 10-13.5%, which are some of the lowest rates in the U.S. for cryptocurrency-backed loans.
The low rates contribute to the affordability of the service, which Co-Founder and VP of Operations Flori Marquez declared to be substantial to the company. She said:
“Our goal is to offer the most affordable and accessible lending product in the U.S. and beyond. Our focus is on providing crypto investors the ability to do more with their investments, and this mindset will continue to drive our commitment to being the lowest cost provider.”
The Expansion Of BlockFi
After the licensing approval in California, the lender is seeking to grow its credit service, which includes the expansion into other locations and the addition of more products. One of the new services under consideration is the support of more cryptocurrencies as collateral. (Currently the platform accepts Bitcoin and Ether.) Other services would include the offering of credit cards.
BlockFi is backed by several investors such as ConsenSys Ventures, and SoFi. In July 2018, the company secured another investment from Galaxy Digital Ventures LLC, a blockchain technology investment firm and cryptocurrency. Through Galaxy Digital Ventures LLC, BlockFi has raised $52.5 million.
Zac Prince, the CEO and Co-Founder of BlockFi hopes the company’s upward trend will continue, not just in acquiring new investors, but in venturing towards other markets. He said:
“Our license approval in California and other states is a testament to the client-friendly design of our product and our robust compliance standards. We have seen strong interest from across the U.S. and are excited to continue that growth to other markets.”
Looking for other interesting crypto developments? Check out our crypto news site to find out more.