According to Business Insider, BlockFi, which operates in the cryptocurrency lending market, received $52.5 million in investment from Mike Novogratz's cryptocurrency bank Galaxy Digital.
BlockFi provides loans to individuals and companies, and accepts Bitcoin and Ethereum as collateral. According to Zach Prince, the company's CEO, its immediate plans are to use the funds received for development outside the United States, as well as support more digital currencies on its platform. The company is currently working on adding new cryptocurrencies and products to the system, such as fixed income investments, lines of credit, credit cards.
The startup offers its services in 42 US states and the basic principle of its operation is similar to banking in that it holds client assets with a registered custodian and submits credit utilization reports to the major credit bureaus. Earlier this year, BlockFi led its second round of funding, raising $1.55 million from ConsenSys Ventures, SoFi and Kenetic Capital.
As part of its expansion strategy, the company hired former Bank of America managing director Rene Van Kesteren as chief risk officer.
Earlier this year, Mike Novogratz, one of Bitcoin's most prominent proponents and investors, raised $250 million with Galaxy Digital raised $250 million. which are designed for trading and managing cryptocurrency assets, as well as helping blockchain startups.
According to coindesk.com
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