How Are BlockFi Client Assets Stored?

BlockFi offers loans backed by your crypto assets. What this means is that our clients stake Bitcoin (BTC)Ether (ETH), or Litecoin (LTC)as collateral in order to receive USD in return. When taking out a BlockFi loan, clients send their crypto to a unique secure wallet address that is generated for each client.

How does BlockFi securely store client crypto assets?

BlockFi client assets are securely deposited with our primary custodian Gemini at a unique wallet address generated by Gemini, a New York trust company licensed by the New York State Department of Financial Services. Gemini is a fiduciary under §100 of the New York Banking Law and held to specific capital reserve requirements and banking compliance standards. Gemini also has digital asset insurance coverage and is SOC 2 Type 1 security compliant on its exchange and custodian platform.

When you send over collateral for your loan, the crypto is transferred into Gemini’s cold storage system. This is a type of offline storage that is only accessible in a secure, access-controlled facility that is protected from cyber attacks. For more information about their security protocols, please visit their website here.

Once the funds are transferred to Gemini, client assets will not be accessible by the borrower until the loan has been paid off.

What are the legal assurances that protect the return of my collateral?

We have numerous protections set up for return of secured crypto collateral. The first is the loan contract – it outlines our obligation to return collateral once the loan is paid off. BlockFi operates under Article 9 of the Uniform Commercial Code, which governs secured lending and file a UCC-1 with the state you reside in. The UCC-1 document is simply a legal form which informs your home state that BlockFi is in possession of your collateral. This is done as a fall back in the rare event BlockFi were to become insolvent. This regulation only applies to residents of the United States, international applicants do not follow this process. Additionally, we work with a 3rd party loan servicer that is set up to guarantee execution of loan contracts.

What happens if my crypto assets appreciate or experience blockchain forks?

Any gains from the price appreciation are the client’s to keep once the loan is paid off. Additionally, if any forks or airdrops were to occur during the loan term, we will return any additional coins that occurred during the loan term as long as our custodian supports that coin. Again, these coins will be returned once the loan is fully paid off.

What are the benefits of taking out secure collateralized loans?

People who invest in cryptocurrencies often have a long-term view of their asset. Having to sell their Bitcoin or Ether can limit their ability to benefit from potential long-term increases in value. With BlockFi, crypto investors can access USD without having to sell their crypto assets. By using your BTC, ETH, or LTC as collateral, you can do anything from buying a home to funding a business without having to sell your crypto.

How to take out a BlockFi loan?

Simply Apply Now or use our crypto backed loan calculator. The application takes less than two minutes. Once completed, you will receive a decision from our team within one business day. Many clients go from application-to-funding in as few as 90 minutes.

If you have any questions about BlockFi or how our loans work, please contact us at We love hearing from you.

BlockFi lets you use your Bitcoin, Ether, and Litecoin to do things like buy a home, pay down debt, or even fund your business without having to sell your crypto. Start your application now and get funded in as few as 90 minutes.

How a Bitcoin loan works

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Client Testimonials


As an investor with significant crypto holdings, BlockFi gave me a valuable tool to get capital, at a fair price, without liquidating my crypto holdings. Aside from offering the best price, their approach to secure storage and thoughtful loan to value ratios gave me confidence that they were the right partner to work with for my cryptocurrency needs.


As a long term crypto holder, it’s important to me to be able to leverage my existing capital without selling. Earning monthly interest all in one place has simplified how I use my cryptoassets.


BlockFi makes it fun to be a hodler again.


We have felt strongly that this market needs access to debt beyond fragmented, short term margin trading options in order to reduce volatility, facilitate scale and put the financial infrastructure for this ecosystem on par with other asset classes. We're happy to have BlockFi as part of the Consensys family and see tremendous growth opportunities for their platform.


BlockFi was my first choice when looking to use crypto as collateral for a fiat loan. BlockFi's friendly and professional staff helped make for a very smooth process from start to finish.


It feels great to have my crypto be recognized as a real asset, which can used as collateral. I'm going to be able to immediately pay off a credit card I've been carrying a balance on.


Learn more about earning crypto interest and crypto-backed loans with BlockFi

Apply in less than two minutes.

Fastest Bitcoin and Ether backed loans in the industry.

Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access
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Disclaimer: 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. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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