Brokerages in the blockchain industry are continuously raising funds towards the implementation of new products. This was proven again with BlockFi, a cryptocurrency loaning association, who just completed their Series B Funding Round. Held by Valar Ventures, more than $30 million was acquired by multiple investors. This marked a significant moment for both companies, as Valar Ventures is a startup capital firm that competes against larger powerhouses. Owned by Peter Thiel, the Co-Founder of PayPal, the billionaire has been active in the foreign exchange market for a prolonged period.
He stood as a substantial investor in TransferWise, which prompted BlockFi to select Valar Ventures for primary involvement. With the assistance of this capital investment firm, eleven corporations in the finance market invested into BlockFi. This included Akuna Capital, Morgan Creek Digital, PJC Brokers, Avon Ventures, CMT Digital, Purple Arch Ventures and Capital Island Ventures. Secondary investors into the Series B Funding Round included HashKey Capital, Kinetic Capital, Arrington XRP Capital and Winklevoss Capital. Some of the most significant names in the global financial market are now backing BlockFi throughout the 2020s.
The Brokerage in New York City already holds partnerships with notable firms in the financial market, which includes Galaxy Capital from Mike Novogratz’s. The billionaire provided the startup firm with $58 Million, with the Gemini Exchange also backing them with custody insurance for all accounts under BlockFi. Subsequently, the board of executives with BlockFi failing could prompt the Winklevoss twins to acquire all consumers under their exchange. Before such a ferocious takeover could occur, BlockFi is creating multiple products to make their presence stronger in the blockchain space. This will extend to BlockFi providing cryptocurrency loans to United States-established investors.
Title Partner with Valar Ventures, Andrew McCormack, spoke on the completion of their Series B Funding. Andrew expressed: “We were proud to have made our first investment in the crypto sector with BlockFi, and we’re excited to continue propelling the company forward as they define the industry standard for what a modern financial services company for cryptocurrency looks like.”
The Cryptocurrency Lending Program at BlockFi
Those wanting to receive loans under the BlockFi brokerage must register for the cryptocurrency lending platform, which maintains $650 million in available funds for distribution. Corporate, Institutional and Retail investors have exclusive access to this loaning program. Standard investors are excluded for safety purposes. Those that acquire these loans will pay a 3.8% premium rate, allowing for BlockFi to earn greater profits than previous. Those that don’t pay the premium investment rate could see that percentage increase to 12%.
The Chief Executive Officer & Co-Founder of BlockFi, Zac Prince, spoke on their upcoming products. He stated: “At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth. With this investment, we’re one step closer to realizing that vision. For most people, cryptocurrencies are something out of speculative fiction. Adoption of these assets is limited by the average consumer’s ability to understand how to use them.”