BlockFi has raised over $80M to bank and issue loans with cryptocurrencies. We analyze BlockFi's strategy, investors, business model, market size, and competition.
With cryptoassets totaling around $270B in value — not to mention abundant corporate interest in the space — blockchain investors and institutions now have serious wealth management considerations. Yet there’s no mainstream way to take out a loan against cryptocurrency, let alone earn interest on deposited bitcoin.
However, a wave of startups and blockchain projects are catering to the crypto investor segment and offering financial services for the first time.
BlockFi has emerged as one of the major VC-backed players offering crypto lending services. Currently, the company is originating loans and attracting deposits with up to 6.2% in annual interest for stored cryptoassets. It has raised $81M in backing from investors including Consensys Ventures, Galaxy Digital, and Coinbase Ventures.