American cryptocurrency lending firm BlockFi announced earlier this month that they had secured $18.3 million in series A funding. The funding round was led by venture capitalist firm Valar Ventures, co-founded by PayPal co-founder Peter Thiel.
BlockFi offers consumers crypto-backed loans that allow individuals to access liquidity from their crypto holdings without selling, instead of using their crypto holdings as collateral. Additionally, they also offer an interest-earning account specifically based around Bitcoin. The recent funding received by BlockFi by Valar Ventures is to be used on the expansion of products that BlockFi offer on their existing platform.
This is not BlockFi’s first rodeo regarding receiving institutional investment with the business being the first crypto-based loans business to receive institutional funding in United States Dollars which was in the form of $50 million via Galaxy Digital, a firm specialising bridging the crypto and institutional worlds.
There is an emerging trend within the Blockchain space of businesses allowing individuals to use their crypto assets as collateral for lending. Lending is such an integral part of the overall global economic culture, making it the easiest for institutional investment firms to take on board and to invest their capital in.
However, this, in turn, has an elevated effect on the rest of the cryptocurrency and blockchain space as it results in more eyes on the space, leading to more traditional financial institutions researching innovative projects to utilising the potential of the technology.
In the meantime, businesses can use the core fundamental monetary value of digital currencies to provide consumers with a new way of lending money for their needs. Dragon continues to develop its innovative blockchain solutions, challenging traditional remittance systems.
As Steve Jobs once said, “Innovation distinguishes between a leader and a follower.”
Experience Dragons innovation now by getting hold of the latest version of the Dragon Social Wallet to enjoy fast, secure, frictionless payment solutions. Download the app on the Apple App Store and the Google Play Store.