BlockFi was founded on the belief that crypto investors should have access to the same products and services available in the traditional financial markets. The BlockFi platform has grown rapidly in the past two years thanks to the support of clients from over 50 countries. As of this month, over $53 million in client crypto is stored with BlockFi in its Gemini custodial account and is earning interest every day.
As of April 15, 2019.
Last month we launched the BlockFi Interest Account (BIA), a product that reflects our belief that crypto is the ultimate financial equalizer. Our goal is to help our clients store their assets in the crypto ecosystem for the long term by offering them better interest rates than the largest banks in the world. Right now, the best online savings accounts offer 2.25% APY, which is dwarfed by the 6.2% APY BlockFi provides to crypto investors.*
On May 1, 2019, we will be making the following updates to our interest account:
- We are retroactively dropping the minimum required BTC balance to earn interest to 0.5 BTC. After launching BIA, a lot of users reached out to our team asking that we drop our minimum eligible balance to earn interest. We’re excited to let our community know that BTC balances of 0.5 BTC and up will now begin earning interest on their deposits. And as an added bonus, we’re applying this retroactively as of April 1st. That means if your BIA BTC balance was between 0.5 and 1 BTC in April, you’re eligible to receive interest at the end of April. We expect to lower our minimum balance further in the near term.
- ETH deposits up to 250 ETH will earn 6.2% APY. BlockFi’s ability to pay interest to our clients is based on crypto market lending conditions. As we’ve touched on previously, we exclusively work with institutional counterparties to generate this yield. Over the past month, demand for borrowing ETH has dropped, and as a result, ETH tier rates will be adjusted in tandem.
- Now serving India. We saw a huge amount of demand from India over the last month and we’re excited to welcome their crypto community to our platform. We currently serve clients in 65 countries and we’ll continue to add more.
We’re able to provide the interest account product because we’ve created a marketplace for institutional borrowers. Our portfolio management system, built by our Chief Risk Officer Rene van Kesteren, monitors and manages all of these deals 24/7. Previously, Rene managed structured lending for Bank of America for 15 years prior to joining BlockFi. We leverage our relationships with our institutional partners to access superior yields that we pass along to our clients. As rates change in the market, we adjust the rates our clients receive. Our goal is always to provide the most competitive prices, so that you can get the most out of your crypto investments. Additionally, based on client feedback, we have a number of new security and dashboard features coming to client accounts in the coming weeks.
If you have questions about our changes, how we manage your wealth or want to learn more about our team, we’ll be putting out thought pieces to answer your questions. Feel free to reach out to our team at firstname.lastname@example.org. We love hearing from you.
– The BlockFi Team
* Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.