Crypto lending platform which is supported by Galaxy Digital, ConsenSys Ventures among others, has introduced a new trading platform that attracts zero fees. According to CoinDesk, the platform’s clients will have the liberty to buy or sell utilizing their current balances. The trading platform will allow the clients to buy or sell Bitcoin, Ether, and GUSD. For instance, customers will have the capacity to purchase Bitcoin using Ether or GUSD from their deposit and vice versa.
The new trading service will attract zero trading fees and comes with a divergent profit model. The profit will be generated from the sale of data based on user’s trades to large institutional crypto companies which will be the market makers within the platform, thereby offering liquidity.
According to Zack Prince, BlockFi CEO, explained that market makers are interested in information on the trades taking place and can only get it through maintaining relationships with various venues as per their support. In other words, market makers must pay to get data from different venues.
Prince also explained some of the market makers are already BlockFi customers but in the crypto lending section while others are equity investors such as Akuna Capital, Susquehanna as well as CMT Digital. He added that since these firms will have different activities within the BlockFi platform, it will enhance the building of strategic ties with them.
According to the CEO the decision to launch an exchange or trading services after a survey revealed that the majority of the customers withdraw their crypto funds and assets for trading purposes. Prince explained that the majority of the customers requested an introduction of trading services within the platform.
Returns to Customers
BlockFi has become a big name in the crypto space for providing investors an avenue to get a return from their crypto without having to do anything. Customers who have kept their GUSD, Bitcoin or Ether with the platform are able to take loans using their cryptos as the collateral. Customers are also able to earn interest based on the amount of their deposits. The company lends the deposits to institutional investors for trading purposes who pay interest that is passed on to the depositors.