Digital asset lending company BlockFi has received a strategic investment from Three Arrows Capital (TAC) via a secondary transaction, according to the company.
Three Arrows Capital is a crypto hedge fund manager that focuses on emerging markets. TAC has reportedly been providing greater risk-adjusted returns for nearly a decade. Three Arrows Capital Pte. Ltd. is a Registered Fund Management Company with the Monetary Authority of Singapore.
Founded by Su Zhu and Kyle Davies, TAC is expected to assist BlockFi as the company looks to expand its presence in the Asia-Pacific region. BlockFi is planning to open an office in Singapore to better serve more institutional clients.
Zhu, CEO of TAC, explained that being an institutional client of BlockFi helped them to recognize that the company’s mission of helping to expand the cryptocurrency ecosystem aligned with their own philosophy.
“We have had a great relationship with BlockFi and when presented an opportunity to become more involved on the investor level, the answer was evident. BlockFi has grown at an impressive rate and we are looking forward to helping propel the company forward in global markets.”
Zac Prince, CEO and co-founder of BlockFi, said that having a client join the company in a greater capacity as validating:
“Bringing on Su Zhu and the team at Three Arrows Capital aligns well with our focus on international expansion of our institutional services offering – which is one of our strategic initiatives for this year.”
BlockFi recently raised interest rates on the BlockFi Interest Account (BIA), allowing clients to earn up to 6% APY on Bitcoin, and 8.6% APY on stablecoins such as USDC and GUSD. Borrowers may use the platform as a way to utilize the value of crypto holdings without booking any capital gains that may incur a taxable event. If you park your crypto at BlockFi you can earn interest on the holdings – somewhat similar to a bank savings account but with a higher rate of return.
BlockFi offers the ability to exchange cryptocurrency pairs between BTC, ETH, LTC, USDC and GUSD. The company uses Gemini as its primary custodian.
