Major cryptocurrency lending company BlockFi has added support for two new assets to its list of supported digital currencies.
According to a press release shared with Cointelegraph on Jan. 8, the firm has added major altcoin Litecoin and USD Coin - the dollar-backed stablecoin from major United States-based cryptocurrency exchange Coinbase.
The new additions mean that BlockFi users can now trade and receive loans as well as interest with the aforementioned cryptocurrencies.
Clients can earn monthly compounding interest through the BlockFi Interest Account.
USDC carries an annual percentage yield of 8.6%, while Litecoin's APY through the BIA is 3.8%. Litecoin and USDC will also be available on BlockFi's new trading platform, along with other major digital currencies like Bitcoin, Ether and the Gemini Dollar.
Cryptocurrency loans and lending began gaining traction during the 2018 bear market.
Crypto lending has grown more popular for several reasons, including low interest rates, an increase in the number of borrowers and investors for whom receiving crypto immediately is convenient, and a simplified system for borrowers i.e. individuals who did not qualify for a bank loan can still easily receive digital money.
Crypto lending services allow long term holders of cryptocurrencies another avenue of capitalizing on their holdings, other than the "Buy and hold" investment strategy.
According to a recent analysis by Cointelegraph, the entire crypto loan industry is estimated to be worth nearly $4.7 billion, with demand for crypto loans rapidly increasing.
In order to meet increasing demand in new jurisdictions, BlockFi recently received a money transmitter license in the U.S. state of Washington.
Crypto Lending Firm BlockFi Adds Support for Litecoin and USD Coin
Published on Jan 8, 2020
by Cointele | Published on Coinage
Mainstream crypto adoption and DeFi were the main topics discussed at the Hangzhou International Blockchain Week
The Hangzhou International Blockchain Week 2020, one of the largest blockchain and crypto conferences in China, put a heavy focus onto mainstream adoption, with influential figures from the industry discussing the ways hundreds of millions of users could be drawn to the space.
Cardano Foundation Warns About Suspicious Activities in Japan
The Cardano Foundation has warned that a suspicious firm is trying to rake in investments by claiming contact with the foundation.
Texas Regulators Take Aim at South African Cryptocurrency MLM Scheme
The Texas State Securities Board has successfully shut down the operations of an illegal cryptocurrency investment scheme.
Cointelegraph Exclusive: CFTC Moves Annual Fintech Conference Online
On July 9, LabCFTC, the fintech office of the Commodity Futures Trading Commission, announced that it will replace its annual one-day Fintech Forward conference with three separate online sessions under the series title Empower Innovation 2020.