Crypto Lender BlockFi Answers LINK Marines Call, Chainlink Holders Can Earn 5.5% APY
Cryptocurrencies have been riding on a bullish market for much of 2020, and this unprecedented success has continued well into 2021.
But despite what may seem to many crypto enthusiasts as a BTC show, altcoins are performing incredibly well, with some even surging by 300%. One of such outstanding crypto projects is Chainlink which has generally made its LINK investors happy.
LINK Tokens To Make 5.5% APY
In a major move that will see altcoins courting for attention, BlockFi would now support Chainlink on its platform.
The popular cryptocurrency lending platform BlockFi announced that it would enable LINK hodlers to earn interest in their digital asset. According to the announcement, LINK deposits would attract a handsome 5.5%APY for investors. Interests would also be paid back in LINK tokens.
BlockFi's business model revolves around creating interests by lending out investors' digital assets to business clients and other high-value investors. The firm, which raised a recorded $80 million in seed funds in 2018, is also looking to compete with Grayscale after filing documents with the Securities and Exchange Commission (SEC) to launch a Bitcoin Trust Fund.
Attempting to create a one-stop crypto shopping mall, BlockFi also runs an over-the-counter trading desk for institutional and ultra-high-net-worth clients. The company, which owns a 5% share in Grayscale's Bitcoin Trust Fund (GBTC) worth $856 million, says it aims to create an independent digital asset trading platform targeted to meet investor's financing needs.
BlockFi also partnered with payments giant Visa as part of its rewards program. The scheme, which is focused on promoting mainstream use of crypto for payments, will see BlockFi credit card holders earn Bitcoin every time they make payments with their cards.
DeFi Wants To Replace Legacy Banking
Decentralized finance (DeFi) has been gaining mainstream adoption for a while. With most economic activities suspended due to the covid-19 induced lockdowns, many account holders saw banks paying as little as 0.5% interest on their savings.
DeFi protocols like Celsius and BlockFi paying as much as 25% (in the case of Celsius) on digital asset holdings have seen many investors flock into the sector.
Many traditional savers see little sense in keeping their funds in the banks, do not see the need to keep their cash in the banks as DeFi now offers legacy-backed services like loans, asset swaps, and interest earnings on crypto assets. Rather, DeFi is seen as the best investment tool to create wealth. With the nascent sector sweeping the world off its feet, the nascent industry has only continued to grow by the day and experienced explosive growth so far.