BlockFi Raises Its BTC and ETH Interest Rates, Effective Next Month

News / 19.03.2020

Crypto lending firm, BlockFi has announced that, effective April 1, it is raising interest rates on BTC and ETH holdings. The firm’s founder and CEO, Zac Prince announced the update last Tuesday.

According to the announcement, Tier 1 BTC holders, those who keep up to 5 BTC on the platform, will earn 6% annual percentage yield (APY). Whereas Tier 1 ETH holders, those who keep up to 500 ETH on the platform will also earn 4.5 APY.

However, GUSD and USDC stablecoin holders will still maintain the 8.6% interest rates. Currently, Tier 1 BTC holders are earning only 4.9% APY, while Tier 1 ETH holders on the other hand are earning 3,6%.

Prince said there are two major factors that enabled the firm to take this move. The first one is supply constraint, as other market participants have pulled back on lending activities. The second factor he mentioned is ample opportunities for market-making and arbitrage coming out of the extreme volatility that the market experienced in the previous week.

Prince further noted that the firm’s balance sheet is stronger than ever. He said shifts in the institutional lending markets have created opportunities that expand BlockFi’s margin. He added that, their Series B capital funding in January was well timed and the firm remains well-resourced to continue its rapid growth.

Source: Cryptopress.

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.