Cryptocurrency-backed lending startup Blockfi added support for buying cryptocurrencies such as Bitcoin with cash on the platform. The purchase can be made by sending cash through wire transfer.
Blockfi said the customer can send US Dollar wires to the platform to purchase stablecoin in the form of Gemini Dollars (GUSD), and begin earning up to 8.6 percent on USD-denominated assets. Currently the default Stablecoin for BlockFi Wire purchases is GUSD, each of which is backed by one USD.
The USD deposit will appear in the form of GUSD in the customer account. After a stablecoin purchase is reflected in the customer’s BlockFi account in GUSD, they will immediately be eligible to trade these funds into any BlockFi supported cryptocurrency.
BlockFi also offers the ability to sell stablecoins back to the customer and receive the proceeds via wire. At this time, it only supports wire withdrawals of $10,000 or more. However, smaller amounts can be withdrawn, but only in the form of stablecoin or cryptocurrency to an alternate wallet address.
Additionally, the customer can trade their stablecoin for other supported assets such as BTC, ETH, LTC, and USDC.
The New York-based crypto financial services provider is a secured non-bank lender that offers cryptoasset-backed USD loans to cryptoasset owners who collateralize the loan with their cryptoassets. It holds clients’ Bitcoin and Ether with a registered custodian and issues loans in USD to their bank accounts.
BlockFi to offer a suite of financial products such as crypto-based interest accounts, crypto-backed loans in USD and zero-fee trading. The company began crypto-backed lending in January 2018.
Last month, BlockFi raised $30 million in Series B funding led by Valar Ventures. Other participating investors include Morgan Creek Digital, Avon Ventures, Winklevoss Capital and Arrington XRP Capital. This comes just six months after it raised $18.3 million in a Series A funding.
The company intends to use the proceeds to grow the team at an accelerated pace and expand its offerings to include products accessible to a mainstream audience, starting with a mobile app in the coming months.