BlockFi, the leading cryptoasset-to-USD lender, announced it has expanded its services to California. As of today, cryptocurrency investors in California can use BlockFi to lend money by giving cryptocurrency as collateral. With the expansion, BlockFi now offers the possibility of lending money in 44 states, making BlockFi the largest and most widely accessible crypto-to-USD lender in the U.S.
Options for borrowing and lending with cryptocurrencies are on the rise. It started with SALT and Unchained Capital, but since then more lending companies and platforms have risen. BlockFi, a fairly new lending service, raised $52.5 million in a fundraising round led by Mike Novogratz’s Galaxy Digital in July and is now using that money to expand. The New York City-based startup issues loans backed by bitcoin and ether to individuals, companies, and institutions.
Because cryptocurrency prices are very volatile, it’s hard to know when to sell. BlockFi lends money to cryptocurrency holders who don’t want to offload their holdings but also don’t necessarily want so much of their assets tied up in cryptocurrencies. You can get dollars using your crypto as collateral – without having to sell it. And as of today, this is also possible when living in California.
BlockFi CEO and Co-Founder Zac Prince said the following about the expansion:
“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.”
The company’s success has been highlighted by positive reviews from early clients, many of whom used their loan to invest in real estate, start businesses, or pay down higher-cost debt. BlockFi loans can be secured at interest rates ranging from 10-13.5%, the lowest crypto asset-backed loan rates in the U.S. market.
As Flori Marquez, Co-Founder and VP of Operations at BlockFi highlited on Twitter:
“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 be the lowest cost provider.”
BlockFi is currently planning to grow their credit services into additional products and geographies. This includes support of more crypto assets as collateral and the offering of new credit products, such as credit cards.