As blockchain technology and its associated economy continue to mature, a growing number of projects are aiming to provide services that have been the mainstay of more established, and traditional entities.
Nowhere is this more evident than in the decentralized finance (DeFi) sector, and BlockFi is a wealth management platform that enables users to earn interest on their digital assets as well as borrow funds by using their cryptocurrency holdings as collateral.
The project aims to disrupt the financial industry by allowing people to put their digital assets to use, and by offering attractive terms for anyone intending to make use of their platform.
BlockFi is based in New York, USA and retains a business address at 201 Montgomery Street, Second Floor, Suite 263, Jersey City, New Jersey 07302.
The company was launched in August 2017 by Zac Prince and Flori Marquez, and the pair have successfully raised over $60m in funding over four investment rounds, with the last round taking place in December 2018.
BlockFi has secured investment from well regarded entities including ConsenSys Ventures, Kenetic Capital, SoFi, Mike Novogratz’s Galaxy Digital, and Anthony Pompliano’s Morgan Creek Capital.
BlockFi is classified as a secured non-bank lender and offers US Dollar loans that are backed by crypto assets and operates under Article 9 of the Uniform Commercial Code which governs secured lending.
The company also files UCC-1 financing statements with each of its borrowers’ states. BlockFi holds its clients’ crypto assets with Gemini which is a licensed cryptocurrency exchange and registered custodian, and issues loans into their bank accounts in the form of USD payments. The team have also connected with third party loan servicer Scratch which manages all loan contracts and repayments.
The platform is currently operating in around 35 US states, and collateral options include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Gemini’s GUSD,…