There are a lot of companies out there right now competing on building the ultimate crypto credit card, but there’s one company that stands out. The company is a Crypto Asset Lending startup named BlockFi .
Backing the company are some of crypto Wall Street’s most dominant players, including Fidelity subsidiary Devonshire Investors.
Other investors include Mike Novogratz’s Galaxy Digital, which previously backed the firm in a $52.5 million round in July.
As for the latest round, the firm has raised $4 million in convertible debt investments. Options and crypto proprietary trading shop Akuna Capital led the round alongside CMT Digital, Morgan Creek Digital, and other firms.
Bear market doesn’t stop its growth
Currently, BlockFi lends fiat to individuals and companies holding crypto.
Despite the bear market, the firm continues to see month-over-month growth and has originated over $10 million in loans.
Now the company is planning to launch a credit card product and an interest-earning savings account for crypto while looking to expand its Wall Street ties.
Now, you might automatically assume that this means the credit card will reward your spending with airline rewards, mileage, and gift cards, but that’s not the case with BlockFi’s upcoming crypto credit card.
The upcoming crypto credit card will reward you with crypto for your spending.
Over time as you spend more money on the card, you will have more cryptocurrency in rewards. This is quite similar to Bundil’s investment app where you spend money and they automatically invest your spare change in crypto for you.
The firm expects to partner with an established credit card company on the product. It is early days for the potential product. As a first step, the firm will have to show a banking partner there is ample interest from clients.
According to the CEO of BlockFi, the goal is roughly 10,000 pre-customers prior to launching the crypto card to the public.
The firm also plans to offer in 2019 an interest-earning savings account for cryptocurrency. Similarly to a traditional savings account, users would be able to put bitcoin into an account with BlockFi and earn more bitcoin on it.
“Coming from the traditional financial markets, we believe there are certain gaps in infrastructure in today’s crypto asset markets that need to be filled in order for the crypto asset industry to grow and attract new participants,” Colleen Sullivan, head of CMT Digital, said in an emailed statement reported by The Block.
“Loans backed by crypto assets is one of them. We believe the BlockFi team has built the solution to fill this gap.”
The roster of investors is actually quite impressive. With the amount of funding and well-known advisors on the team, I’m pretty confident that BlockFi’s team will be able to pull this through and disrupt the fintech industry with blockchain technology.
We will follow BlockFi closely and keep everyone updated on the latest news.