Casa Partners With Blockfi Seeking To Help Clients Gain Easier Access To Crypto Financial Services
Months after launching a browser extension dedicated to the lightning network-powered Bitcoin node, Casa is teaming up with BlockFi to help the latter advance its crypto-backed loans. According to the partnership, the custody startup will not offer any financial products whatsoever. It will only be incentivizing anyone willing to take up BlockFi’s crypto-backed loans and interest products.
Mainly, the role of Casa in the partnership will be to provide membership benefits to anyone interested in BlockFi’s products. It will act as a go-between, linking the lender and the customer.
Members Of Casa, Targeting Incentives From BlockFi To win big
BlockFi, a New York-based crypto lending startup which majorly helps crypto investors manage their coins and grow their worth, offers a plethora of Bitcoin loans and interest account services. It already has over $53 million worth of Bitcoin and Ethereum, all of them being customer deposits.
However, those who are set to benefit from this partnership are traders who are Casa members and would like to claim part of BlockFi’s dividends. The lending startup recently lowered the minimum balance from 1BTC to 0.5BTC and expanded its reach to India, a move which significantly increased the amounts held in its interest-earning accounts.
Anyone eligible will, therefore, claim an extra 60 basis points in the crypto lender’s current annualized interest (10% more) on Bitcoin deposited. Additionally, one will stand to earn 50 basis points, equivalent to 0.5% in reduced rates on any Bitcoin-backed loan.
The whole arrangement could be said to be a more advanced version of BlockFi’s favorite ‘refer a friend program.’ Other than Casa being a different partner, the other main distinction is the fact that it will be rebating back the entire referral bonus to the customer instead of taking it away. Also, no data is shared by the two partners, apart from the customer information by will both have in their possession.
Security And Privacy Brought The Two Together
According to the founder of Casa, Jeremy Welch, the decision was informed by their customers’ wishes in lending BTC. He said that they had to settle for BlockFi owing to its focus on the virtues of security and Privacy, the way Casa also does.
BlockFi has been tremendously growing, especially after embarking on providing Bitcoin-backed fiat loans. It mainly targets large institutions seeking loans in exchange for their digital assets. As for those who deposit their coins, the lender rewards them with between 6% and 6.2% interests compounded annually.
But even as Casa helps customers earn incentives, the founder is adamant that they don’t have any intention of dealing in custodial services. He said they don’t intend to engage in financial products of whatever nature in the future.