BlockFi major crypto loans added support for two new assets to its list of supported cryptocurrencies.
According to a joint press release with Cointelegraph on January 8, the company added Major Altcoin Litecoin (LTC) and USD Coin (USDC) – the dollar-backed stable currency of Coinbase for the major cryptocurrencies in the United States.
New additions mean that BlockFi users can now trade and get loans in addition to benefits using the above mentioned cryptocurrencies. Clients can earn monthly compound interest with a BlockFi Interest (BIA) account. USDC holds an annual percentage (APY) of 8.6%, while Litecoin’s APY through BIA is 3.8%.
Litecoin and USDC will also be available on BlockFi’s new trading platform, along with other major digital currencies like Bitcoin (BTC), Ether (ETH) and Gemini Dollar (GUSD).
Interest in crypto loans is growing
As the currency markets continue to mature, new types of services and solutions related to digital assets continue to emerge. Lending coin loans and lending began to gain strength during the bear market of 2018.
Encrypted lending has become more popular for several reasons, including lower interest rates, an increase in the number of borrowers and investors who receive encryption immediately, and a simplified system of borrowers, i.e. individuals who did not qualify for a bank loan with easy access to digital money.
In addition, long term crypto lending services provide owners of cryptocurrencies with another way to take advantage of their properties, other than the “buy and contract” investment strategy. By offering their assets for loans, they can get interest rates, in some cases, much higher than those offered in the traditional banking sector.
According to a recent analysis by Cointelegraph, the entire crypto loan industry is valued at around $ 4.7 billion, with demand for crypto loans increasing rapidly.
In order to meet the growing demand in new jurisdictions, BlockFi recently received a license to send money in Washington State.