New York based Crypto-to-USD lender BlockFi has said it will start supporting loans backed by both Litecoin and Gemini’s recent stablecoin token GUSD.
Founded in 2017, BlockFi already operates in over 40 states in the US. It offers both debt and credit products and seeks to bring liquidity to the cryptocurrency space.
More so, it is backed by some of America’s leading financial firms including PJC and ConsenSys Ventures, as well as Galaxy Digital Ventures LLC, which provided the company with nearly $53 million in capital during a funding round in July 2018. This marked the first investment into crypto-backed loans from an institutional enterprise.
While speaking with Bitcoin Magazine, Zac Prince the firm’s CEO, said that BlockFi’s acceptance of Litecoin was a “logical first step” toward supporting most — if not all — of the world’s top 10 cryptocurrencies.
“Litecoin was recently added to Gemini and has a long history of price appreciation,” he commented. “Having large, imbedded capital gains is one of the motivating factors for considering a loan backed by crypto. Litecoin also has strong liquidity with USD pairs in multiple trading venues,” he said.
With the addition of GUSD, BlockFi can offer loan options to customers outside the standard business hours of 9-6 through a cashless option.
Abbey Young, BlockFi’s director of customer operations, also told Bitcoin Magazine, that, “Most banks have an outgoing wire cutoff time of 5:30 p.m. EST, so we can only send funds between the hours of 9 a.m.-5:30 p.m. EST during the week. However, if a client would like to be funded in GUSD, we can deposit those funds at any time, like weekends or after 5:30 p.m. EST.”
He added that, “Customers can apply [for funds] in less than two minutes. The team will then evaluate the application and respond within one business day. Once accepted, the customer sends their crypto to a unique wallet address we generate for them. Then, we send them their funds. With USD, we wire the money directly into their bank account. For our GUSD customers, we can send it to any wallet address they like. This entire process often happens in as few as 90 minutes.”
Howrver, Blockfi is putting modalities in place that would facilitate more lending products supported by an different cryptocurrencies to further provide, timely liquidity across the global crypto scene.
“We believe that the crypto asset market will continue to grow, and we are attracted to the promise of being able to deliver financial services on a more equitable and global scale rather than traditional systems,” Prince said.
BlockFi is the first crypto-backed lender to support loans backed by GUSD.