Bitcoin and Ether Lender BlockFi Raises $18.3 Million Series A

Crypto lending startup BlockFi received $18.3 million in a Series A funding round led by Valar Ventures, the company announced Tuesday.

According to a company statement, BlockFi plans on using the capital for additions to its product line up.

The firm's premier product, yield-bearing bitcoin deposits, launched in March.

BlockFi offers cryptocurrency-backed loans.

Speaking on participating in the Series A closure, Valar general partner James Fitzgerald said BlockFi's product is bringing cryptocurrency mainstream.

"We are excited to help BlockFi build robust 'picks and shovels' for this emerging asset class," he said.

The Series A funding round comes five months after the launch of its bitcoin yield-bearing loans.

Riding on the backs of a promised 6.2 percent interest rate, the product garnered $25 million in deposits after its March 5 launch.

By late April, over $50 million was deposited in BlockFi's interest-bearing accounts.

Accounts with deposits over 25 bitcoins or 500 ether had rates reduced to 2 percent annual yield.