Think traditional bank bank accounts offer to low an interest rate? Well a start up company, BlockFi, last year raised over $58 million to begin the march to become the “place to be” for financial services. Or, if you prefer, replace your bank…..maybe. BlockFi just launched two bitcoin and ethereum accounts that will pay interest, in either bitcoin or ethereum’s (ether), the equivalent of a huge 6.2% interest on deposits. In January alone BlockFi attracted over $10 million from a mix of institutional, retail and corporate crypto investors. Its a great way to accumulate bitcoin and ethereum over a long period of time. So, in simple terms, bitcoin has it in for your bank account (and banks in general). Fast moving world out there. More below.
(Bill Taylor/ Fintek Capital)
“Bitcoin is out to (eventually) replace your bank account and that’s just got more likely with the launch of two bitcoin and ethereum accounts that pay a whopping 6.2% interest on deposits.
There is a catch though—that interest will be paid in either bitcoin or ethereum’s ether, depending on the account deposits, making this account most appealing to those who want to accumulate as much bitcoin and ethereum as possible.
The bitcoin and ethereum interest accounts have been launched today by crypto lending platform BlockFi following a private beta in January that saw them attract over $10 million in deposits from retail, corporate, and institutional crypto investors.
BlockFi, which last year raised some $58 million dollars in various funding rounds, has sought to establish itself as the “go-to provider” of financial services for crypto investors, offering loans from $2,000 against bitcoin, ethereum or litecoin at a 4.5% interest rate, with plans to soon launch a portfolio line of credit and crypto-backed credit card.
The 6.2% interest on BlockFi’s bitcoin and ethereum interest accounts, which will see deposits lent out to those who are interested in borrowing crypto, compares to an average U.S. account interest rate of 0.08%, according to some saving trackers….”