The cryptocurrency loaning start-up BlockFi has secured $18.3 million through Series A funding as declared by the company on Tuesday. The company is looking forward to international expansion and to launch a new financial product.
The Series A funding of the two-year-old company was led by Valar Ventures and was supported by previous investors like Morgan Creek, Galaxy Digital, Fidelity, ConsenSys, CMT Digital, Susquehanna, Akuna Capital, PJC, Avon Ventures, and Winklevoss Capital.
Zac Prince, the CEO of BlockFi, has told it the first foray of Valar Investment into the cryptocurrency industry. The VC firm is known for its investment in financial technology companies.
BlockFi, loan out cash to the customer who has Bitcoin or Ethereum as collateral holding. The minimum deposit for that they require is cryptocurrency worth $20,000. As per the CEO of the company, many people are seeking for a loan of this kind. This has led to the growth of revenue of the company more than ten times since the beginning of the year.
The fund raised through Series A will be used for the addition of a new product line of the company. Besides offering loans, the company also pays interest on a deposit of Bitcoin, stablecoin, and ether. Yield bearing deposit of Bitcoin is a premier product of the company. The funding will also help the company to increase its headcount. Presently the company has 40 staffs and is expecting to increase it to 60.
As per the views of the CEO, the company is not a bank but is a fintech corporation in the mold of SoFi. After its foundation, the company has grown up as a one-stop solution for checking, mortgage, personal loan, and even works as an investment platform. The company is also planning to offer crypto trading shortly.
The CEO also told they would roll out the phase 2 roadmap of the company, which includes the introduction of bitcoin reward credit card. Phase 3 of the roadmap consists of expansion into emerging markets like Latin America.
Speaking about the invest James Fitzgerald, a partner of Valar has said BlockFi is bringing cryptocurrency to the mainstream. They are happy to help BlockFi to build an active “picks and shovels” for the crypto assets.
After the launch of the yield-bearing loan of Bitcoin, the Series A funding has taken place.