Three days after receiving a $250 million revolving line of credit from FTX, BlockFi is increasing the yield on its lending products for Bitcoin, Ethereum, and Stablecoins.
Effective Risk Management’s Influence
The interest rates for BlockFi’s loan products will be increasing soon. The cryptocurrency lending firm will be raising its rates across all levels for Bitcoin, Ethereum, and other stablecoins like USDC, USDT, GUSD, PAX, and BUSD, according to its official Twitter account. The Bitcoin yield will rise from 0.5 to 1.9 percent, Ethereum from 0.5 to 1.75 percent, and stablecoins from 0.5 to 3 percent. As a result, Bitcoin and Ethereum rates are between 2 and 3.5 percent, and stablecoins are between 6 and 8.75 percent.
Price Hike in July
Beginning in July, the price hike will take effect. Additionally, the company will reduce withdrawal costs for Bitcoin, Ethereum, and stablecoins by $1, $2, and $25, respectively. On the other side, the company will discontinue its “one free withdrawal per month” policy altogether. Notably, the report did not mention the $250 million loans the business received from the cryptocurrency exchange FTX three days prior. The company’s balance sheet and platform strength have been “bolstered” by the loan extension. The business had already fired 20% of its staff and paid off a loan made to well-known cryptocurrency hedge fund Three Arrows Capital.