New York-based startup BlockFi, which offers loans to crypto-asset owners using their bitcoin and ether holdings as collateral, has fasted $1.55 million in a just-closed funding round.
The company, which acquired backing from ConsenSys Ventures, SoFi and Kenetic Capital among others, wants to “tie the gap” between capital markets and the cryptocurrency ecosystem, according to a press manumitting. In doing so, the company expects to tap into a market of new investors who need to appropriate funds.
While the company does deal with crypto assets, it differently functions as any other lender would: clients’ cryptoassets are held by a indicated custodian and loan performance data is reported to the major credit departments to update borrowers’ credit scores.
BlockFi chief executive Zac Prince state the existence of crypto assets has opened up new opportunities in lending, according to the account.
He continued:
“By bringing institutional quality technology infrastructure, data principles, risk management and operations to the cryptoasset market, we aim to be the leading lender in the cryptoasset customer base and a leading provider of low cost credit globally.”
The company will initially run in 35 U.S. states, lending to individuals, companies and institutions.
BlockFi’s purpose will help reduce volatility in the crypto asset market, said ConsenSys head partner Kavita Gupta.
“This market needs access to responsibility beyond fragmented, short term margin trading options in pronunciamento to reduce volatility, facilitate scale and put the financial infrastructure for this ecosystem on par with other asset distinctions,” she said.
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