The Fidelity startup BlockFi has launched its BIA product “BlockFi Interest Account” with which it offers its customers up to 6.2% compound interest per year on bitcoin and ethereum deposit accounts.
The news, published yesterday, has the aim of making BTCs and ETHs profitable by using the financial instrument known as compounding.
The BlockFi Interest Account is now on @ProductHunt! Hop into our submission to ask our team questions about earning 6.2% APY on your #BTC and #ETH: https://t.co/sdlyAoMLoq
— BlockFi (@TheRealBlockFi) March 5, 2019
On the official website, the startup explains and describes the process that is also based on valuations in US dollars as well as crypto, this is due to the volatility of the latter.
In essence, the monthly interest is 6% on BTC and ETH deposits with a compound interest of up to 6.2% for a period of 12 months.
The plan offered by the BIA product requires a minimum deposit of 1 BTC or 25 ETH in order to benefit from interest, while for withdrawals there is the risk of having to wait 1 to 7 days, with the promise of improved performance over time.
In addition, it is specified that the initiative has been in private beta since early 2019 and already holds over $10 million in assets from retail, corporate and institutional crypto investors.
BlockFi’s CEO, Zac Prince, said:
“The launch of BIA is another significant step in BlockFi’s goal of becoming the go-to provider of financial services for crypto investors. Lending and borrowing is readily available at the institutional level, and we’re excited to leverage our relationships and capital markets expertise to provide utility and yield on digital assets for all crypto investors”.
Behind the startup, there are large Wall Street investment giants, including Devonshire Investors, the subsidiary of Fidelity, which certainly promotes a greater degree of reliability for customers on the products offered.
Not only that, by the beginning of December 2018, the startup had also raised $4 million from other world-famous investment companies such as Akuna Capital, Susquehanna Government Products, LLLP, CMT Digital, Recruit Strategic Partners, Galaxy Digital Ventures by Mike Novogratz and Morgan Creek Digital by Anthony Pompliano.
BANG BANG!@TheRealBlockFi is launching a Bitcoin and Ether deposit account today where you get paid 6% annual interest, compounding monthly, paid in cryptocurrency.
Bringing the HEAT on a Tuesday ????????https://t.co/Zq6k9Xc4rA
— Pomp ???? (@APompliano) March 5, 2019
Don't trust me or anyone else in crypto. Do your own research. Starting with their FAQ and resource center are great places to find information.
— Pomp ???? (@APompliano) March 5, 2019
Nah, Mike Novogratz, myself, and many other crypto bulls are investors in Blockfi 🙂
— Pomp ???? (@APompliano) March 5, 2019
