We are excited to announce the addition of a new feature to the BlockFi Interest Account (BIA) – Interest Payment Flex. Clients holding BTC, ETH or GUSD in their BIA can select to have their compound interest paid out in one of the offered currencies. For example, if you have BTC or ETH in your interest account, you can choose to receive all your interest in GUSD, ETH or BTC, or if you are holding only GUSD, you can choose to receive all your interest in BTC, ETH or GUSD. This is a great way to diversify your cryptocurrency portfolio without having to buy any new crypto.
Starting now, you can enable this feature by navigating to the Settings page of your account and visiting the “Interest” tab. There, you’ll be able to choose how your interest is paid. This new feature is completely optional. If you choose to take no action, you will continue to receive interest in the asset(s) deposited in your account.
At the end of the month, all interest will show as one payment in the ledger below your crypto balances on the BlockFi Interest Account Dashboard. You can change your preferred interest payment type up to 48 hours before month end. Please see our Terms of Service for full details about our BlockFi Interest Account product.
We believe that Interest Payment Flex will bring added value to our clients and we are excited to receive feedback about this new feature.Here are a couple of reasons we think current BlockFi clients will love Flex:
Turn your crypto into a passive USD-based income stream
Generating extra cash each month is a powerful utility to have and is particularly relevant for clients looking to maintain their current level of crypto exposure (instead of increasing or decreasing their exposure). For example, this objective would be achieved by holding BTC in a BIA and electing to earn interest in GUSD.
Use stablecoins to create a dollar cost averaged exposure to crypto
If you don’t want to invest material equity directly into crypto, you could hold stablecoins in a BIA but elect to earn interest in crypto. This use case would steadily acquire crypto over time – effectively dollar cost averaging in to exposure. Holding GUSD in a BIA and electing to earn interest in BTC or ETH would achieve this objective.
Diversify your crypto portfolio at no additional cost
Clients that already own crypto can gain exposure to other cryptocurrencies without having to purchase any new amounts. For example, a BTC holder could begin to accumulate ETH without having to commit any new capital.
– The BlockFi Team