Institutional Client Three Arrows Capital Turns Investor in Crypto Lending Platform BlockFi
Three Arrows Capital has become a strategic investor for the New York-based provider of crypto lending products BlockFi, via a secondary transaction, after already being its institutional client.
Three Arrows Capital is a crypto and hedge fund manager founded by Kyle Davies and Su Zhu. It’s focused on markets currently emerging and has been for almost 10 years a provider of risk-adjusted returns.
BlockFi Raised Another $30 Million in a Series B Funding
The deal with Three Arrows Capital comes 2 months after BlockFi has collected $30 million in a Series B funding that was led by Valar Ventures. BlockFi is supported by Galaxy Capital’s billionaire Mike Novogratz. In 2018, Galaxy Capital raised almost $58 million from multiple funding rounds. More than this, the Gemini exchange of the Winklevoss twins is a custodian for the BlockFi accounts covered by digital asset insurance.
According to a BlockFi statement, the crypto lending platform obtained by now more than $650 million in deposits from institutional, corporate and retail crypto investors. It began its loaning services in March last year, offering loans between $2,000 and $100 million against Bitcoin (BTC), Ethereum (ETH) and stablecoins.
BlockFi Interest Rates Are Rising
Recently, BlockFi announced a 6% raise in interest rates for its Interest Account (BIA). At the moment, its Tier 1 customers who loan up to 6 BTC have an interest yield of 3.6%. The rate for ETH lenders is 4.5% for up to 500 ETH, which is more than the 2 – 3.6% previous APY. The rates for the USD Coin (USDC) and the Gemini dollar (GUSD) remains the same at 8.6% APY. Making a comment about the latest Three Arrows Capital news, CEO and co-founder of Three Arrows Capital, Su Zhu, said:
“In being an institutional client of BlockFi, we quickly recognized that the company’s mission of helping to expand the cryptocurrency ecosystem aligned with our own philosophy for the space. We have had a great relationship with BlockFi and when presented an opportunity to become more involved on the investor level, the answer was evident.”
BlockFi CEO Announces an Extension of Credit to Miners
In the meantime, BlockFi’s CEO, Zac Prince, said its company is extending miners’ credit, seeing BlockFi’s competition is at ease ever since the coronavirus crisis has started. He also mentioned that until now, it didn’t do it because the lending platform’s competitors were up to taking large risks which BlockFi wasn’t in any way comfortable with.