New York based collateralized crypto lender BlockFi has raised $52.5m in venture financing led by Galaxy Digital.
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BlockFi Raises $52.5 Million in Round Lead by Novogratz's Galaxy Digital
The startup offers services in 42 U.S. states and functions similarly to a traditional bank in that it holds clients' funds with a registered custodian and reports loan performance information to the major credit bureaus. The company is now looking to expand to more states and other countries, as well as add additional cryptocurrencies and new products. These products could include fixed-income and debt investments, lines of credit and credit cards, BlockFi CEO Zac Prince told Business Insider. As part of this expansion, the company has hired former Bank of America managing director Rene van Kesteren as chief risk officer. The funding round follows BlockFi's previous $1.55 million raise from ConsenSys Ventures, SoFi and Kenetic Capital. ConsenSys managing partner Kavita Gupta previously told CoinDesk that she believed that BlockFi's work can reduce volatility on the cryptocurrency market.
