Market Overview

BlockFi Raises $52.5M for Cryptoasset-backed Loans

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  • BlockFi planning rapid expansion of cryptoasset-to-USD lending platform
  • BlockFi partners with Galaxy Digital Lending LLC on loan purchasing
    facility and receives equity investment from Galaxy Digital Ventures
    LLC
  • Marks first institutional investment in cryptoasset backed loans

BlockFi,
the leading cryptoasset to USD lender, announced today it has raised
$52.5M to expand operations. Galaxy
Digital Ventures LLC
, a digital currency and blockchain technology
investment firm founded by Mike
Novogratz
led the deal. This marks the industry's first
institutional investment in cryptoasset backed loans. BlockFi's existing
investors, which include ConsenSys Ventures and PJC, also participated
in the funding round.

"We're excited to partner with BlockFi and jointly lead the way for
financial institutions to participate in crypto investing strategies,"
said Mike Novogratz, Founder of Galaxy Digital Ventures LLC. "A robust
lending market is the keystone for financial systems and BlockFi's
institutional approach and deep lending expertise were key drivers in
our decision to partner with them."

BlockFi's lending product is currently the fastest and most affordable
option for cryptoasset-backed USD borrowing with the largest geographic
coverage in the US market. 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, diversify into traditional investments or pay
down higher-cost debt.

"Galaxy's investment and decision to make us their exclusive consumer
lending partner is a strategic step towards BlockFi delivering large
scale credit across the crypto ecosystem," said CEO and co-founder Zac
Prince
. "The support we've seen from existing clients and investors
highlights the strong demand for leveraging Bitcoin and Ether for
low-cost USD loans. We look forward to expanding our services to support
more cryptocurrencies and geographic markets in the near future."

BlockFi sets itself apart from other cryptoasset lenders by pairing the
lowest rates for crypto-to-USD borrowing with institutional-quality
benefits. The company is the lender with the most state lending licenses
in the country because it has invested heavily in a robust legal and
compliance approach.

As part of the investment, Chris Ferraro, Head of Principal Investments
at Galaxy Digital Ventures LLC joined the BlockFi Board of Directors.
Rene van Kesteren, a former Managing Director at Bank of America Merrill
Lynch, joined BlockFi as Chief Risk Officer this past May. These
appointments are significant additions to an already deep team of
fintech and banking veterans who have migrated to the blockchain
industry from the traditional finance sector.

"BlockFi has differentiated itself in the lending business with capital
cost and scale, which will help them raise incremental institutional
capital as demand grows", said Chris Ferraro, Head of Principal
Investments at Galaxy Digital Ventures LLC. "We believe BlockFi's risk
management lens, regulatory approach, and marketing capabilities
position the firm to be the market leader."

About BlockFi

BlockFi operates an institutional quality debt market for
cryptoassets.
Based in New York, the company currently offers
individuals and corporations the ability to leverage their Bitcoin and
Ether to obtain USD loans, bringing additional liquidity to the
blockchain sector. BlockFi operates in over 40 US states and is backed
by leading investors including Galaxy Digital Ventures LLC, ConsenSys
Ventures, and SoFi. The company was founded by Zac
Prince
and Flori
Marquez
in 2017 and started lending in January 2018. Learn more
about their products, company and team at BlockFi.com.

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