Litecoin And Gemini’s Stablecoin Backed Loans By BlockFi. BlockFi has decided to support Litecoin and Gemini’s Stablecoin. The company announced that crypto loans backed in both Litecoin and Stablecoin tokens will be accepted. BlockFi was only supporting Bitcoin and Ether but recently started to accept the two others among the top 10 crypto assets. As a consequence, it became the first crypto-backed lender to support GUSD.
Founded in 2017, BlockFi started to bring liquidity to the cryptocurrency space by offering both debit and credit products. Many leading financial firms (PJC and Consensys ventures, Galaxy digital ventures LLC) of the respective countries support the company. The company is based in New York. These financial firms have provided nearly $55 million in the capital during the funding period.
“BlockFi wants to support not all but top 10 digital currencies of the world, its acceptance of Litecoins and Stablecoins is the first step towards it,” stated BlockFi CEO Zac Prince. The company has been diligent in its research; observing good appreciation in Litecoin, it decided to take it on. Large embedded capital gains are the main reasons for accepting crypto collaterals for loans. In multiple trading venues, crypto has strong liquidity with USD.
BlockFi can provide loans to its customer at times other than standard business hours due to the addition of GUSD. Abbey Young, Director of Customer Operations at Blockfi stated, “a customer can get funds even after standard business hours and on weekends by adding GUSD. Currently, due to wire cutoff time of 5.30p.m, BlockFi is unable to send funds beyond this time period.”
Earlier in September BlockFi announced its acceptance of crypto-backed loans on the Ethereum network supported by USD. The recent support for top cryptocurrencies helps customers apply for loans. After the initial evaluation, the bank provides the loan within one business day. The bank generates a wallet address where customers send their cryptocurrencies. Once after the confirmation, the bank transfers the requested amount to their account in USD. This entire process takes place within 90 minutes.
The company still wants to support more cryptocurrencies as collateral in providing loans. It aims to enable more lending products to provide cryptocurrency liquidity across the Globe.
BlockFi believes that the crypto market has huge growth potential, and therefore wants to provide more financial services based within crypto space rather than traditional systems.