Encrypted asset lending startup BlockFi announced on Tuesday that BlockFi received $18.3 million in Series A funding led by Valar Ventures.
In addition to Valar Ventures, founded by PeterPel, the co-founder of PayPal, Winklevoss Capital, Galaxy Digital, ConsenSys, Akuna Capital, Susquehanna, CMT Digital, Morgan Creek, Avon Ventures and PJC also participated. Round financing. Valar's investment is its first investment in the cryptocurrency industry, after the company invested in other financial technology companies such as Transferwise.
According to a statement from the company, BlockFi plans to use the funds to increase its product line. The company's most important product, the Bitcoin Income Deposit Service, was launched in March this year. In addition to deposit services, BlockFi also offers cryptocurrency-backed loans.
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James Fitzgerald, general partner of Valar, said that BlockFi's products will make cryptocurrency mainstream.
“We are excited to help BlockFi build a strong 'iron and shovel' for this emerging asset class,” he said.
The A round of financing was carried out five months after the launch of the Bitcoin income loan service.
Thanks to a 6.2% interest rate commitment, the product received $25 million in deposits after its launch on March 5. As of the end of April, BlockFi’s interest-bearing account has been deposited in excess of $50 million.
However, the maximum interest rate for larger accounts for the month was lowered. The annual rate of return for accounts with more than 25 BTC or 500 ETH deposits fell to 2%.