BlockFi, New Jersey-based crypto lending firm, has announced a new feature that allows users to buy crypto assets directly from the platform using USD via Silvergate Exchange Network (SEN).
BlockFi made the announcement on March 10th on its website. According to the announcement, users can now send USD wires to the platform to purchase stablecoin, and also can earning up to 8.6% on USD-denominated assets.
The new feature is supported by Silvergate bank, which operates a payment network called Silvergate Exchange Network (SEN) and is available both domestically and internationally. A user can initiate USD wire to BlockFi by selecting USD (as stablecoin) as a currency of deposit. After selecting, user will then be presented with instruction to initiate a wire to BlockFi bank account.
The USD deposited via wire via wire will be used to purchase stablecoin and will appear in the form of Gemini Dollar (GUSD) in user’s account. Stablecoin will have a 1 to 1 value relationship with the US Dollar means 1 USD buys 1 GUSD.
After a stablecoin purchase is reflected on user’s account in GUSD, he will immediately be eligible to trade these funds into BlockFi supported cryptocurrencies that are Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Tether (USDC). The BlockFi does not charge any fees to receiver a wire. The cash transfers can also be used to deposit money with BlockFi and earn interest, currently set at an 8.6 percent annual rate which can paid in BTC also depending on the customer choice.
BlockFi claims to be only retail crypto lenders that supports cash transfer. The firm was founded in 2018 has seen a significant growth in 2 years. The firm is backed by some notable investors including Valar Ventures, Morgan Creek Digital, Galaxy Digital, and Coinbase. The firm has totally raised $108.7 million in funding that, as reported, also includes $30 million in its series B funding led by Peter Thiel-backed Valar Ventures.