Cryptocurrency to dollar lending platform BlockFi has scored $52.5m in funding, just months after it raised $1.5m in a former equity round.
The transaction was led by digital currency and blockchain technology investment firm Galaxy Digital Ventures. Previous backers of BlockFi, ConsenSys Ventures and PJC, also made commitments to this latest financing.
New York-based BlockFi is a non-bank lender that provides dollar-based loans to crypto asset holders. The platform, which is live in 35 states, works by a consumer sending their cryptoassets to BlockFi’s secured storage, and in turn receiving funds in their bank account. Monthly interest repayments are then paid in either dollars or cryptos.
Loans can be taken for a 12-month period and on a 12 per cent interest rate. Both individuals and corporations can apply for loans on the platform, helping to diversify investments, getting potential tax benefit or supporting finances.
Through the new investment, the company hopes to expand its operations in terms of cryptocurrencies supported and geographical markets.
Galaxy Digital Ventures founder Mike Novogratz said, “We’re excited to partner with BlockFi and jointly lead the way for financial institutions to participate in crypto investing strategies. 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.”
As part of the deal, Galaxy Digital Ventures head of principal investments Chris Ferraro will join the company’s board of directors.
In May, the company named former Bank of America Merrill Lynch managing director Rene van Kesteren as its chief risk officer.
At the beginning of the year, the company raised $1.55m from ConsenSys Ventures, Kenetic Capital, PJC, SoFi, Purple Arch Ventures and Lumenary.
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