Ethereum
$166.45 2.26%
ETH · 2w

Crypto Lending Firm BlockFi Raising Interest Rates on BTC and ETH

Clients of one crypto lending company may soon notice some changes in response to the recent drops in the market. 

Starting on April 1, BlockFi will be raising the interest account rates on Bitcoin (BTC) and Ether (ETH). 

According to CEO Zac Prince, BlockFi users holding between 0-5 BTC now will earn a 6% annual percentage yield (APY), while those with up to 500 ETH will earn a 4.5% APY. Stablecoins like the Gemini Dollar (GUSD) and USD Coin (USDC), will retain their 8.6% APY interest rates.

Why are the interest rates changing now?

With the recent Bitcoin crash caused by the coronavirus restrictions affecting markets, BlockFi has reported “very limited liquidity”. The lending firm said “they did not liquidate USD loan client collateral below a price of ~$4,500, despite the market reaching lows of ~$3,800.”

Therefore the decision to raise interest rates is unexpected when considering how traditional financial institutions are reacting to these changes in the market. Even the U.S. Federal Reserve has cut interest rates to 0%. 

Reason for optimism in the current market

Nevertheless, Prince sees hope in the crypto market, citing that BlockFi itself has maintained “perfect performance” with “zero losses” reported. 

“Our balance sheet is stronger than ever and shifts in the institutional lending markets have created opportunities that expand our margin.”

The CEO went on to describe how BlockFi has processed the largest number and volume of daily deposits and withdrawals in the platform’s history. Tens of millions in trading volume have continued without interruption as a result of the BlockFi team’s efforts.

“As the global economy weathers a number of headwinds, including the coronavirus pandemic, rest assured that at BlockFi we will remain a stable source of liquidity, while continuing to provide best-in-class wealth management solutions for our clients and the broader cryptocurrency market.” Notable investors b...
Continue on cointelegraph.com
Recent news
ETH +2.26% · nevafomo.com · 2h

Catex Exchange & CATT Token Review

Catex is a centralized exchange from China. I’ve been trying it out over the last year and it’s exceeded expectations. The team in Hong Kong, provide all your s
ETH +2.26% · publish0x.com · 4h

Bitcoin Above $7000 - What Now?

Earn Crypto for Publishing AND for Reading or Watching quality stuff! Publish0x is a Crypto agnostic platform where both authors and readers earn in Crypto.
ETH +2.26% · theblockcrypto.com · 6h

Money 2.0 Stuff: How many years is a DAO year?

MakerDAO is a non-custodial credit facility built on Ethereum and it is also not the Maker Foundation. They’re entirely different! MakerDAO? Never heard of it. We’re the Maker Foundation. Sometimes pe...
ETH +2.26% · actionforex.com · 6h

ETHUSD Breaks Resistance

Ethereum has finally broken above key short-term technical resistance and may be set to attack towards the $175.00 resistance level. Continued gains above the $155.00 level could see the ETHUSD testin...