Crypto Lending Firm BlockFi Adds Support for Wire Transfers to Buy Crypto

Published at: March 10, 2020

Cryptocurrency lending platform BlockFi has added support for cash on its platform, which enables customers to purchase crypto through wire transfers.

The company revealed the new option in a press release on March 10, detailing that its users can now send wires transfers to BlockFi to buy digital currencies and earn up to 8.6% annual percentage yield. The wire transfer service is backed by financial services firm Silvergate and is available both domestically and internationally.

BlockFi founder and CEO Zac Prince told Cointelegraph that, at the moment, Bitcoin (BTC) remains the most popular cryptocurrency on the platform and is followed by Ether (ETH) and then stablecoins like USD Coin (USDC).

“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,” Prince further said.

Soon, BlockFi will begin adding support for additional cryptocurrencies on the platform, including more stablecoins, asset-backed coins and cryptocurrencies. 

Investments and plans for new products

BlockFi’s funding round in late February saw the company secure $30 million. The round was led by United States-based capital fund Valar Ventures, with participation of Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, and Hong Kong-based HashKey Capital, among others.

At the time, BlockFi planned to allocate the raised money for expanding its offerings and hinted that it will roll out products accessible to a mainstream audience, starting with a mobile app, in the coming months.

The crypto loan industry is growing

Recent months have been marked with a number of developments in the crypto loans industry. BitGo, a crypto firm that claims to handle over 20% of all Bitcoin transactions, announced plans to launch an institutional-level crypto lending service. The Celsius Network was reported to have more than doubled its interest payments in the three months since its last disclosure.

In the meantime, over-the-counter digital currency trading and lending firm Genesis closed the fourth quarter of 2019 with record-high results in loan originations since its inception. Genesis facilitated over $4.25 billion in loans since its incorporation in March 2018. It originated more than $1.1 billion in loans and borrows for its institutional customers, with total active loans of $545 million, showing a 23% increase compared to $450 million in Q3.

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