Today we’re excited to announce the launch of Gemini Dollar (GUSD) stablecoin support throughout our platform. BlockFi Interest Account (BIA) clients based outside the U.S. can now earn up to 6.2% APY, earned monthly in GUSD. BIA launched in March 2019 and is currently paying interest on over $100M in BTC and ETH balances held at Gemini. BlockFi also offers GUSD as a USD loan funding option and as collateral from institutional crypto borrowers. BlockFi’s USD loan rates start as low as 4.5%.
“Adding support for GUSD is an exciting step for BlockFi that strengthens both our platform and the overall crypto finance ecosystem,” said Zac Prince, CEO of BlockFi. “Greater accessibility to financial services is a key promise of the industry. We currently have customers from more than 50 countries who can now access low-cost debt or earn interest using a market-leading digital dollar.”
The addition of GUSD to BlockFi’s platform creates an opportunity for non-U.S. residents to access dollar-denominated debt markets, which are traditionally restricted to multinational corporations and governments. This is a great way for traditional investors to access the utility created by the crypto ecosystem without exposure to more volatile cryptocurrency markets. By leveraging the global nature of blockchain technology, BlockFi is offering services to retail investors worldwide that are typically only available to wealthy private banking clients.
“The implication of adding this functionality is that you could see crypto companies like BlockFi compete with traditional fintech challenger banks by taking advantage of assets like Bitcoin for on-ramps in to a dollar-based blockchain financial ecosystem,” said Prince.
BlockFi generates a yield on GUSD by originating loans to our consumer and institutional clients. We have been lending to consumers and businesses around the world since January 2018. To date, we have never had a loss of funds from any of our loan customers.
“The continued adoption of Gemini Dollar and powerful use cases of digital dollars on the blockchain helps move the industry forward. Debt and credit is a developing function in the crypto market and we’re excited to support market leaders like BlockFi in their efforts,” said Sarah Olsen, Managing Director at Gemini.
You can learn more about GUSD at Gemini.com/dollar.
At launch, non-U.S. clients will be eligible to earn up to 6.2% APY, paid monthly with a minimum balance of $2,500 GUSD. Balances above $100,000 GUSD will earn a tiered rate of 1.5% APY. Additionally, withdrawals will be subject to a 30-day processing window. Support for U.S.-based clients is expected later this year.
But why are U.S. residents excluded? Due to lack of regulatory clarity around fiat-backed stablecoins, BlockFi has opted to take a conservative approach and limit GUSD to non-U.S. residents at this time. We are actively working with counsel to make GUSD available to all BlockFi clients as soon as possible.
The feedback from our clients has been instrumental in helping us improve our services. If you have any comments or suggestions about how we can improve the look and feel of BlockFi products, feel free to reach out to our team at firstname.lastname@example.org. We love hearing from you.
– The BlockFi Team