BlockFi a crypto lender for crypto startups got $52.5M from Novogratz’s Galaxy Digital, a company led by Michael Novogratz’s. BlockFi is a New York-based cryptocurrency lending platform.
Galaxy Digital Gave BlockFi, the Crypto Lendending Platform $52.5M
The fund given to BlockFi is meant to serve the purpose of loan purchasing facility and equity investment. The financial injection is the first of its kind for digital asset-backed loans. The fund is also attributed to the passion of Digital Galaxy in meeting the rate of demand for crypto to fiat currency lending.
According to the BlockFi co-founder and the CEO, he stated that,
“The support we’ve seen from existing clients and investors highlight the strong demand for leveraging Bitcoin or Ether for low-cost USD loans.”
Meeting the demands of crypto to fiat currency loan has stimulated the need to inject this fund.
Michael Novogratz, the CEO of Digital Galaxy, stated that a robust lending market is vital for any financial system to thrive, this he attributed in his words that “BlockFi’s institutional approach and deep lending expertise were key drivers in our decision to partner with them.”
The principle of a robust lending market applies to every functioning society, as new start-ups and businesses mostly depend on loans to thrive and gain grounds. This lending market innovation for cryptocurrency and the newly injected fund of the Digital Galaxy will go a long way in making the crypto world to thrive.
The enormous contribution of the digital galaxy to the crypto lending platform has led to the head of principal investment of Digital Galaxy, Chris Ferraro, joining the board of BlockFi.
As funds are now available for new startups and businesses in cryptocurrency, the affirmation of the CEO of Digital Galaxy remains the trend in the crypto world. Michael Novogratz said at the Korea Blockchain Week in Seoul, that “herd of institutional investors is coming for digital currencies.” The validity of this statement has been seen. However more are still to be seen as more startups acquire loans for their venture.
To obtain a loan from the loan market, you need to get loan approval, then send in your BTC or ETH to BlockFi and in return get USD transferred to your bank account.
Another feat in the right direction for the cryptocurrency, what is your view?
Photo credit: Bitcoin Exchange Guide