Back in July, news.Bitcoin.com reported on the cryptocurrency-backed USD lending platform, Blockfi, which raised $52.5m from investors in an investment round led by Michael Novogratz’s Galaxy Digital. On Monday, Blockfi announced the firm is now servicing residents from California and the latest expansion leads to the crypto-lending service being available in 44 states.
Also Read: Novogratz’ Galaxy Digital Leads $52.5 Million Blockfi Fundraiser
Blockfi Expands to California, Capturing 44 US States
On August 27, the firm Blockfi announced that the crypto-lending business has received license approval in the state of California, which marks the company’s coverage in 44 states across the US. Blockfi is a cryptocurrency-backed USD lending platform that allows users to get dollars by using BTC and ETH as collateral. Essentially Blockfi users apply for a loan and get a decision from the firm and loan terms that day. After the approval, the client then deposits BTC or ETH into a storage address, and from there Blockfi transfers USD to the customer’s bank account. Blockfi users make monthly payments in USD or crypto and can get the original funds back after paying off the loan.
Blockfi believes the license approval for California shows there’s a lot of interest stemming from the US for a crypto-backed lending platform that follows regulatory compliance standards. Speaking with news.Bitcoin.com, Blockfi’s CEO Zac Prince says investors are very interested in a secure and compliant crypto-lending product.
“We’ve found that a lot of crypto-asset investors are hesitant to use their crypto because of concerns with security and trust in the space — Blockfi and our institutional investors view these items as being mission critical to our success,” explains Prince. “We’ve built our platform with an institutional-quality approach from top to bottom — Our
