On March 4, Blockfi made an announcement on the launch of its latest savings program known as the Blockfi Interest Account, or BIA. BIA is the latest offering of this crypto-backed USD lending platform. BIA’s began as beta service but are now finally available to the public. They are perfect for those who want to save and keep their Bitcoin (BTC) or Ethereum (ETH) for a generous interest of 6.2% per annum and compounded monthly. The interest is paid monthly in the same cryptocurrency as it was deposited.
Compound Interest Attracts Investment
Blockfi’s BIA is proud of the compound interest, the payment of the interest in crypto, and most of all the institutional backing. These are the three things that they say their competitors do not have. In July of 2018, Blockfi was able to raise $52.5 million in order to begin operations. The funding was provided by Galaxy Digital, the brainchild of Michael Novogratz. The following month, with the approval of the lending firm, it decided to start providing financial services in California.
In fact, the launching of BIA was a huge step towards attracting $10 million worth of BTC and ETH from all types of investors – retail, corporate and institutional. The BIA has clearly taken Blockfi’s role as a crypto-backed financial services provider to the next level. Blockfi CEO Zac Prince said on March 4 that even at the institutional level, Blockfi is ready to provide its lending and borrowing services.
Along with Blockfi, there are other providers of interest-bearing crypto accounts such as Ledgerx. Ledgerx recently announced BTC savings platform that pays as much as 16% annually, even if the BTC crypto market is not appreciating. However, unlike Blockfi, Ledgerx lets a U.S. bank pays the accrued interest.