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BlockFi Interest Account (BIA) Rates Are Changing Based on Latest Market Dynamics

Published, 25 June, 2021

BlockFi continually sets rates based on market dynamics for lending and borrowing. Our goal is to both practice sound risk management policy and maximize earning opportunities for our BlockFi Interest Account (BIA) clients.

In response to changing market conditions, BlockFi is announcing new rates and tiers that go into effect on July 1, 2021 for Bitcoin (BTC), Ether (ETH), Chainlink (LINK), Litecoin (LTC), PAX Gold (PAXG), Gemini Dollar (GUSD), Binance USD (BUSD), USD-backed Stablecoins (BUSD, GUSD, PAX, and USDC), and Tether (USDT)* holdings in the BlockFi Interest Account (BIA).** Note: displayed rates on the BlockFi rates page are current and will update on July 1, 2021.

In order to maintain great rates for the maximum number of clients, BlockFi will make the following adjustments starting July 1, 2021:

Bitcoin Updates

Ether Updates

Chainlink Updates

Litecoin Updates

PAX Gold Updates

USD Stablecoin Updates

The following rate table applies to all USD-backed stablecoins including BUSD, GUSD, PAX and USDC.

Tether Updates (USDT is only available to non-US retail clients)

Market Commentary

BlockFi sets rates for the BlockFi Interest Account (BIA) by balancing prudent risk management principles amid shifting market conditions, with the goal of maximizing the returns we can deliver to our BIA clients. Rates on crypto currencies held in BIA are primarily driven by demand by institutional investors for borrowing these assets.

After a rocky month of large price swings across cryptocurrencies, there’s been some good news:

El Salvador will be the first country to adopt Bitcoin as a legal tender;
MicroStrategy will be participating in capital market arbitrage to first issue High Yield Debt then equities to acquire more Bitcoin; and,
Tesla is issuing forward guidance to once again accept Bitcoin transactions as Bitcoin mining takes further steps toward sustainability.

Despite this positive news, we continue to observe market volatility with Bitcoin price hovering in the low $30K range as of late June 2021, and we are seeing rates in the crypto lending market at lower levels than we have in prior quarters. We are therefore electing to update our rates to reflect current market conditions.

We understand that this rate change isn’t welcome news. In the medium term, we remain optimistic that we may see yield increases in the coming months as crypto hedging activity picks up. When this happens, BlockFi clients will be the first to know.

Conclusion

These adjustments are part of BlockFi’s ongoing mission to continue delivering high-quality, long-term service for our clients while expanding our innovative product offering in a competitive and scalable way. Throughout our history, we have maintained rewarding crypto interest yields even as cryptocurrency prices have fluctuated dramatically. As our track record shows, rates may rise or fall, but BlockFi always remains committed to supporting our clients’ financial goals.

If you’d like to learn more about the crypto lending market and how BlockFi manages risk, take a listen to this interview with our Chief Risk Officer Rene van Kesteren, this interview with our Founder and CEO Zac Prince, and key financial disclosures in this article.

And if you have any additional questions about our rates, products, or services, please submit a support ticket here and we’ll be happy to help.

*USDT is only available to non-US retail clients.

**APYs reflect effective yield based on monthly compounding. Actual yield will vary based on account activity and compliance with BlockFi’s terms and conditions. Rates are largely dictated by market conditions, which are a key factor in a company’s ability to provide its clients yield on their crypto assets. For more information, please see BlockFi's Terms of Service.

Disclaimer: Nothing contained in this announcement should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. The information provided in this announcement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This announcement is not directed to any person in any jurisdiction where the publication or availability of the announcement is prohibited, by reason of that person’s nationality, residence or otherwise.

Neither BlockFi nor any of its affiliates or representatives provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Digital currency is not legal tender, is not backed by the government, and crypto interest accounts are not subject to FDIC or SIPC protections. For more information, please see BlockFi’s Terms of Service.

Last updated on July 26th, 2022

BlockFi NewsInterest

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.

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Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.