BlockFi Adds New On-Ramp, Allowing Customers to Use Cash Deposits to Buy BTC

The cryptocurrency-focused financial company BlockFi said it now has a newly enabled feature that allows its customers to buy Bitcoin (BTC) with cash.

Before, the Jersey City-based crypto lender, only allowed users only to transfer their digital assets [BTC, ETH, LTC, and stablecoins USDC, GUSD] onto the platform from wallets and exchanges. But after today’s announcement, BlockFi customers will be able to send cash to the firm’s platform through wire transfers, through a partnership with crypto-friendly Silvergate Capital.

8.6% Annual Interest Rate

Money will be deposited through cash transfers, whereas the annual interest set for the deposits will be 8.6%, which is about 860 times more than what JPMorgan Chase bank accounts offer.

However, BlockFi isn’t a bank like Chase, which means it doesn’t offer accounts that have federal insurance protection for deposits. Also different than Chase, the crypto firm BlockFi allows its customers to receive their interest rate in BTC. Here’s what Zac Prince, the chief executive of BlockFi, had to say about all this:

“In an increasingly low-yield and volatile market, opportunities like earning 8.6 percent on stablecoin deposits with BlockFi stands out in the crypto sector.

Adding support for inbound wires will facilitate increased liquidity on BlockFi’s platform, which flows through and improves liquidity in the broader crypto ecosystem.”

BlockFi is Trying to Meet Demand

Individual investors from all over the world are more and more interested in cryptocurrencies. Prince mentioned that BlockFi began to develop the capability for wire transfers after receiving many requests from customers to do it. The company was founded back in 2017 and announced in February this year that it has raised from Morgan Creek Digital, Valar Ventures and Winklevoss Capital $30 million in funding.

Its platform has been disclosed to hold $650 million in assets, crypto-backed loans included. On Tuesday, BlockFi announced that it has received the license to function as a money-services business in Florida, which means residents of this state can use its interest accounts and trading service.

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Author: Oana Ularu

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