Crypto lending firm BlockFi posted another record-breaking month in February. The firm paid out over $35 million in interest payments to its clients. This breaks the firm’s previous record set in January of $28 million in interest paid out.
BlockFi CEO Zac Prince noted that these interest payments were comprised of 450 Bitcoin, 5,000 Ether, and $6 million in stablecoins.
BlockFi clients earn interest on Bitcoin, Ether, and stablecoins by depositing their cryptocurrencies into an interest-bearing account. They have grown in popularity as more users look to earn passive income on their digital assets. BlockFi also provides collateralized crypto loans, in addition to savings accounts. This allows users to stake their assets for fiat currency.
The month of February saw BlockFi secure $30 million in funding from major crypto investors. Morgan Creek Digital, Winklevoss Capital and Arrington XRP Capital were among those to invest in the firm. As digital assets become more mainstream, BlockFi has been able to attract more clients over the past year.
BlockFi Growth Coinciding With Bull Market
The growth of BlockFi has coincided with a surging bull market for digital assets as a whole. At its peak, the combined market capitalization of all cryptocurrencies topped $1.7 trillion just last month. It has cooled off since then, as the combined value of all cryptos now sits just below $1.5 trillion.
In December of last year BlockFi partnered with Visa to launch a new Bitcoin rewards credit card. The new card allows users to earn Bitcoin as a reward on purchases instead of cash or airline miles. Cardholders are eligible to receive 1.5% of their purchase back in BTC.
The BlockFi Interest Account (BIA) offers customers the ability to earn up to 8.6% APY with their cryptocurrency. Interest accrues daily and is paid monthly. January saw the company pay more than $28 million in interest.