Cryptoasset-to-USD lender BlockFi announced on Wednesday it secured $4 million in convertible debt investments led by Akuna Capital with participation from Susquehanna Government Products, LLLP, CMT Digital, Recruit Strategic Partners, Galaxy Digital Ventures, Morgan Creek Digital and Devonshire Investors, the private equity group affiliated with FMR LLC, the parent company of Fidelity Investments.
As previously reported, BlockFi describes itself as a secured non-bank lender that offers USD loans for crypto asset owners. The company claims its products bring additional liquidity to the blockchain asset sector and meets needs o both individuals and institutions holding blockchain assets. the company reported it offers the lowest interest rates and most flexible product in the crypto-to-USD lending market. Speaking about the investment, Toby Allen, head of digital assets at Akuna Capital, stated:
“The BlockFi team is providing a critical piece of financial services infrastructure in the crypto space. Companies like BlockFi are representative of the high-quality development that will facilitate continued consumer adoption.”
Zac Prince, CEO of BlockFi, went on to add:
“We’re thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants. Our pragmatic approach to fundraising and team building has enabled us to continue growing through negative market conditions. We are excited to execute on plans to bring new products to market and continue to add more value for our clients.”
Funds from the investment will be used for team growth and the launch of new products, including an interest-earning crypto savings account, a portfolio line-of-credit, and crypto-backed credit cards. The company plans to launch the savings account in the first quarter of 2019.
