BlockFi completed a series A funding round of around $18.3 million. The wealth management solution indicated that the funding round was led by Valar Ventures. Other venture capital firms that participated in the round include Galaxy Digital, Winklevoss Capital, Akuna Capital, ConsenSys Venture, and Avon Capital, among others.
Valar makes its first-ever crypto-investment
This is the first-ever cryptocurrency investment for the New York-based venture capital firm Valar. It was founded by Peter Thiel, the co-founder of PayPal, and has previously participated in several Series A funding rounds for leading fintech companies such as Qonto, Transferwise, N26, and Petal.
Valar Ventures’ General Partner, James Fitzgerald, indicated that BlockFi caught the attention of the VC fund because of its focus on creating an infrastructure that will enable them to invest in digital assets. He added that they are delighted to work with BlockFi in helping them create strong ‘picks and shovels’ in the budding crypto-asset space.
BlockFi offers crypto-based loans
BlockFi focuses on offering crypto investors access to financial services and a Crypto Interest Account that enables users to receive dividends on their deposited assets. Equally, the company provides loans secured by crypto assets with a 50% Loan-To-Value-Ratio. This will be advantageous for investors as it will allow them to use their holdings to carry out purchases without being required to sell and risk losing on profits.
The company is the first-ever crypto-based firm to receive institutional funding for crypto-secured loans in the US after Galaxy Digital gave it a lending facility of $50 million. BlockFi is expected to use the new capital in expanding the range of products it offers on its platform, such as the crypto-collateralized loans and the BTC interest earning accounts.
$53 million in crypto assets under BlockFi
One of the key value propositions of BlockFi is the availability of its services in all states across the US and worldwide. BlockFi Co-Founder, Flori Marquez, asserted that for the first time, they will be able to capitalize on the borderless nature of cryptocurrency to enhance the speed, value, and scope of financial services.
The company indicated early this year that it has more than $53 million of cryptocurrency assets under its management. BlockFi is compliant with US regulations, and this was one of the things that enabled it to receive funding from leading VCs in the fintech industry.