Blockfi Launches High-Interest Crypto Lending Program in India
US-based company Blockfi has just expanded into India, using a high rate on its interest-bearing account for 2 cryptocurrencies.
New Jersey-based crypto startup Blockfi announced Tuesday that it has actually broadened service to individuals in India. Its front runner Blockfi Passion Account (BIA) for BTC and ETH is currently readily available in 65 nations.
“As of this month, over $53 million in client crypto is stored with Blockfi,” the company stated, adding that “We saw a huge amount of demand from India over the last month and we’re excited to welcome their crypto community to our platform.”
A Blockfi representative commented Wednesday:
All of Blockfi’s products will be available to retail and institutions in India. Blockfi have already had clients from India sign up for our services.
Introduced in March, BIAs pay rate of interest in cryptocurrency at the beginning of every month. The company clarified that it generates interest on assets held in these accounts by offering them to institutional as well as corporate borrowers.
The account offers 6.2% yearly interest compounded monthly for consumers with balances of up to and also including 25 BTC or 500 ETH. All balances over that ceiling will most certainly earn a tiered rate of 2% rate of interest. The 2% price was introduced on April 1 due to “unexpected demand from services like crypto hedge funds and VC firms,” the business detailed at the time.
Blockfi CEO Zac Royal prince verified to news outlets Wednesday:
We plan to support additional assets in the interest account but are not able to disclose which ones or specific timing at this point.
Lower Minimum Requirements
Blockfi likewise announced Tuesday that, commencing May 1st, the minimum necessary BTC Balance to earn interest will certainly be decreased to 0.5 BTC, with the expectation to reduce it further in the foreseeable future. Moreover, the reduced balance requirement will certainly be applied retroactively as of April 1st so clients with balances of in between 0.5 BTC and also 1 BTC this month will certainly be qualified to receive interest at the end of the month.
Deposits of up to 250 ETH will also earn 6.2% APY. However, Blockfi revealed that “Over the past month, demand for borrowing ETH has dropped, and as a result, ETH tier rates will be adjusted in tandem.”
Local Exchange Competing With Blockfi
In contrast, local Indian crypto exchange Coindcx launched their own lending program on March 21 that allows customers to earn up to 2% interest monthly, as was previously reported by crypto news outlets. Six cryptocurrencies are eligible with more to be added in the immediate future. The interest rate on deposited BTC is 2%, USDT 1%, BNB 1%, TUSD 1%, XRP 0.75% and ETH 0.75%.
CEO Summit Gupta told news.Bitcoin.com Wednesday that, on his platform, the “annualized interest rate is 26.82% on BTC,” adding that he has seen high interest among users since launch “because the interest rates are good … and users can cancel anytime.”
While Blockfi offers an annual interest rate of 6.2% on BTC, Gupta claims that his exchange offers 24% and requires only 0.01 BTC or 0.01 ETH minimum deposit to earn interest versus Blockfi’s 0.5 BTC and 25 ETH. He further noted that the lock-in period for his exchange is 7 days while it is 1 month for Blockfi, elaborating that withdrawals are also instant on his exchange while Blockfi usually takes 24 hours but could take up to 7 days.
“We use the borrowed funds to provide margin to our Dcxmargin users,” Coindcx stated, acknowledging that while KYC is not required for lending cryptocurrencies, it is for users wanting to withdraw more than 2 BTC per day.
Similar Lending Programs Worldwide
There are similar programs around the globe such as Ledgerx’s Ledgersavings program which currently offers an annualized implied rate of around 16% on BTC. Nexo offers up to 6.5% annual interest on stablecoins. Ethereum-based Compound service offers varying interest rates on users’ BAT, DAI, REP, WETH, and ZRX.
Several regulated crypto exchanges in Japan have similar programs. GMO Coin started compensating to 5% interest every year on BTC, BCH, ETH, LTC, and also XRP in May in 2014 based on the demand of the exchange which can vary from month to month.
Coincheck has a financing program for BTC, compensating to 5% annually. Before the January hack, the exchange paid interest on 12 various cryptocurrencies. Bitbank, one more managed Japanese exchange, is paying in between 3% to 5% rate of interest yearly. While just BTC is currently supported, the exchange prepares to add BCH, ETH, LTC, XRP, as well as MONA to the program.
Would you deposit your crypto in an interest-bearing account? What do you think of Blockfi’s offering? Let us know in the comments section below.
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