BlockFi Interest Account (BIA) Launches with Gemini Dollar Stablecoin Support and 6.2% Interest

The crypto lending startup BlockFi announced that the platform will now be supporting the Gemini Dollar (GUSD). The information was released in a blog post by the company on May 29. Deposits in GUSD will receive an annual interest of 6.2%.

BlockFi Launches Support For Gemini Dollar

BlockFi will allow users to earn interest on their deposits of Gemini USD, the digital currency created by the Gemini crypto exchange. It is worth mentioning that the company offers GUSDT as a U.S. dollar funding option and as collateral for borrowers.

BlockFi’s announcement of support for Gemini dollar is another practical use case of digital dollars on the blockchain, helping to move the ecosystem forward. We are excited to be a part of this launch! #cryptocurrencynews https://t.co/1HeZtWR9l8

— Gemini (@Gemini) May 29, 2019

The CEO of the platform, Zac Prince, said that the intention is to compete with traditional fintech challenger banks.

About it, Mr. Prince commented:

“The implication of adding this functionality is that you could see crypto companies like BlockFi compete with traditional fintech challenger banks by taking advantage of assets like Bitcoin for on-ramps into a dollar-based blockchain financial ecosystem.”

It is worth mentioning that the accounts are not going to be available to United States-based customers due to a lack of regulatory clarity regarding stablecoins that are backed by fiat currency. The Gemini Dollar is backed by US reserves on a 1:1 basis. The intention is to offer services to U.S. traders and investors in the future as well. In order to do so, they are working with a legal counsel that is dealing with all these issues.

It is worth mentioning that BlockFi has recently decreased the interest rates for both Bitcoin (BTC) and Ether (ETH) accounts. There are several crypto-related loan companies that are trying to provide users with lending services.

At the time of writing this article, the Gemini Dollar is the 209th largest cryptocurrency in the market according to CoinMarketCap. The stablecoin has a market capitalization of $21.5 million.