Crypto-focused merchant bank Galaxy Digital has recently led a $52.5 million fundraising round for crypto-lending firm BlockFi, according a blog post[1] by the company July 24.
Galaxy Digital CEO and founder Mike Novogratz[2] confirmed in a tweet[3] that he is, “excited to get into the crypto lending business.” With the new round of investment, the startup will reportedly be able to expand its business outside the U.S.[4] and to support more cryptocurrencies[5].
BlockFi, featuring “loans backed by your cryptoassets,” offers corporate and retail loans[6] on their digital asset holdings. BlockFi currently offers loans on Bitcoin[7] (BTC) and Ethereum[8] (ETH).
The New York-based firm was launched in January 2018 by Zac Prince, a former senior vice president of lease payments operator Cognical, according to Business Insider[9]. BlockFi raised money in two rounds this year, receiving $1.55 million from ConsenSys Ventures, SoFi, and Kenetic Capital in February.
Prince stated that the recent investment[10] by Novogratz is a “strategic step towards BlockFi delivering credit across the crypto ecosystem,” stressing the company has faced a high demand on crypto-lending services.
“The support we’ve seen from existing clients and investors highlight the strong demand for leveraging Bitcoin or Ether for low-cost USD loans. We look forward to expanding our services to support more cryptocurrencies and more geographic markets in the near future.”
Last week, Novogratz predicted[11] that mass adoption of crypto and blockchain[12] is “still five to six years away.” The Wall Street exec said that more institutions will enter the industry “in
