- BlockFi working to make wealth management simple and accessible
- Their new product will allow users to earn a BTC cash-back rate on every transaction via BTC rewards credit card
- Support for USD Coin (USDC) and Litecoin (LTC) is also coming in few weeks
BlockFi, a cryptocurrency lending service backed by Winklevoss Capital, Galaxy Capital and ConSenSys Ventures among others will be coming with its newest product, the BTC rewards credit card, announced the company in its letter from founders where it reflects on 2019 and what to expect in 2020.
The company will be working on developing a product that allows users to spend money on their BTC rewards credit card. But instead of earning a cash back or airline miles, you will earn a BTC cash-back rate on every transaction that you may make with that card.
This BlockFi says is “a way to add value to crypto OGs as well as a novel way to introduce crypto to non-owners in an easy, familiar way.”
Apart from working on the BTC reward credit card, BlockFi will be adding support for USD Coin (USDC) and Litecoin (LTC) in the first few weeks at the “most competitive interest rates in the market.”
Currently, it offers a 6.2% annual percentage yield (APY) on less than 10 BTC deposits and 2.2% on more than 10 BTC. On less than 1000 Ether, BlockFi offers 4.1% APY and 0.5% on the amount exceeding 1000 ETH. On GUSD, there is a standard 8.6% APY.
Expanding the Use of crypto on a global scale
Last year has been a “breakout year” for BlockFi when it launched USD loans secured by crypto, BlockFi trading, and BlockFi Interest Account (BIA). While with BlockFi Trading one can buy and sell crypto pairs with no fees, with BIA you can diversify your crypto portfolio without having to purchase crypto and also earn passive income.
BlockFi also secured $18.3 million in Series A funding led by Peter Theil’s Valar Ventures with participation from Morgan Creek Digital, Winklevoss Capital, and Akuna Capital with ConsenSys and Galaxy being the earlier backers in Q3 of 2019.
At that time, the founder Zach Prince said BlockFi has been seeing its monthly revenue grow over 10 times since January.
Now in 2020, the company's vision is to “to build upon our current suite of financial products in a way that makes wealth management simple and accessible.”
The goal, they say, is to “further expand the use of crypto on a global scale.”