BlockFi brings back crypto yield accounts to U.S. accredited investors – Yahoo Finance

BlockFi brings back crypto yield accounts to U.S. accredited investors – Yahoo Finance

Blockchain Crypto Market Technology
November 8, 2022 by Coinvasity
BlockFi is rolling out its first crypto interest product since it paid a $100 million settlement with the Securities and Exchange Commission in February and agreed to stop offering it to the U.S. public.Called BlockFi Yield, this crypto interest-bearing option is available to accredited investors in the U.S. through the Reg D [506(c)] exemption from

BlockFi is rolling out its first crypto interest product since it paid a $100 million settlement with the Securities and Exchange Commission in February and agreed to stop offering it to the U.S. public.
Called BlockFi Yield, this crypto interest-bearing option is available to accredited investors in the U.S. through the Reg D [506(c)] exemption from the Securities Act of 1933.
The new product comes during a year where crypto lending firms have faced major financial concern and scrutiny, especially after two of BlockFi's major competitors — Voyager Digital and Celsius Network — froze customer accounts this summer and eventually declared bankruptcy and the company itself struck an emergency deal with crypto exchange FTX US.
"While the events of the summer were a true test of our risk protocols, we are confident in our proactive risk management framework," Flori Marquez, BlockFi co-founder and COO told Yahoo Finance, adding that the company was excited to bring back crypto interest-bearing accounts to some U.S. investors.
Before its settlement, BlockFi's interest-bearing crypto accounts were akin to what consumer-focused banks offered, but for much higher interest and risk in a much less regulated asset class. The accounts allowed U.S. investors in certain states to loan their crypto in exchange for a higher variable monthly interest payment. On the other side, the company generated that interest by offering crypto assets as unsecured loans to institutional and corporate crypto borrowers.
By March 2021, BlockFi held as much as $14 billion in customer assets according to data from Crunchbase, largely thanks to lending and borrowing.
It's not clear how different the new Yield product will be compared to company's original interest account offering. Terms for BlockFi Yield and BlockFi Interest Account are close to identical.
Outside better risk protocols and investor disclosure, the terms for BlockFi Yield and its interest account are virtually identical.
The product comes after a rocky year for the crypto space and the firm.
After paying what was at the time a crypto firm's largest settlement with U.S. regulators, the firm has been hammered by plummeting cryptocurrency prices and the bankruptcy of Three Arrows Capital, one of the industry’s largest institutional borrowers. Once it became clear Three Arrows would not be able to meet its margin requirements in time, BlockFi was forced to take a $80 million loss.
While acknowledging both the need for scrutiny in crypto lending businesses and for those businesses like BlockFi to accurately represent risks to customers, Marquez said outlasting other firms has worked in the firm's favor.
“If you think about what's happened to many of the companies that are similar to BlockFi, supply is definitely smaller now given that we're one of the only companies that's operating in the U.S. and so it's changed from being a borrowers' market to a lenders' market,” she told Yahoo Finance.
More recently, BlockFi has resurfaced as a creditor for the financially troubled bitcoin mining company Core Scientific, which warned at the end of October that it may not be able to pay its debt. In Core's worst-case scenario, BlockFi would be on the hook for an outstanding loan of $60 million.
But Marquez reiterated that the company is prepared, thanks to holding increased capital reserves for possible loan defaults among other things.
“We run a diversified lending business. So loans of Bitcoin miners are a small portion of our overall lending portfolio. All of the outstanding loans are collateralized. We have not written a new BTC mining loan since the spring of 2022,” she added.
While Marquez couldn’t speak to the approval process the company will need to complete before offering non-accredited U.S. investors access to crypto interest accounts again, she reiterated the process is a top priority. It necessitates submitting a Form S-1 to the SEC, what's essentially an initial public offering document.
“We are definitely continuously working with our regulatory counterparts to provide BlockFi yield to all consumers in the U.S., because we do believe that U.S. consumers have a right to earn interest,” she added.
Until then, the company is aiming to expand outside of the U.S., having recently announced a payment integration partnership with fintech company Stripe that will make it easier for non-U.S. customers to fund accounts.

David Hollerith is a senior reporter at Yahoo Finance covering the cryptocurrency and stock markets. Follow him on Twitter at @DsHollers
Click here for the latest crypto news, updates, values, prices, and more related to Bitcoin, Ethereum, Dogecoin, DeFi and NFTs
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
John R. Tyson, 32, was found asleep in a women’s bed at her home in Fayetteville, Ark., Sunday morning, according to a preliminary arrest report.
Higher interest rates and the prospect of a Republican Congress were enough to send these clean energy stocks lower.
New boss. New rules.
Petrobras (PBR) has been one of the stocks most watched by users lately. So, it is worth exploring what lies ahead for the stock.
Yahoo Finance reporter Allie Garfinkle details a new report that Facebook parent company Meta is planning for major job cuts this week.
The market is (usually) forward-looking — but unfortunately for Palantir, that's not how things are working out today.
In this article, we will discuss the 10 most undervalued stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Most Undervalued Stocks to Buy Now. Evercore ISI Analyst: “Post-Midterms Tend To Be Very Good For Stocks” On November 3, senior managing director at Evercore ISI, […]
Nio's (NYSE: NIO) American depositary shares jumped 6% Monday morning, but that gain didn't hold for long. The stock's early surge came for the same reason as the double-digit rally Nio saw on Friday. Namely, the hope that China will relax COVID-19-related restrictions that have hurt both supply and demand in the EV sector.
Investors are turning hopeful ahead of the EV maker's third-quarter earnings as macro headwinds start to fade.
Although Oil and Energy stocks have enjoyed impressive rallies throughout the year many stocks in the sector are still poised for growth. The sector is one of the few areas of the economy expected to see growth in fiscal year 2023.
Shares of Viatris (NASDAQ: VTRS) were jumping 16.2% higher as of 11:56 a.m. ET on Monday. The big gain came after the company announced its third-quarter results and revealed plans for two acquisitions. Viatris reported Q3 revenue of $4.08 billion.
Yahoo Finance Live checks out Palantir shares after warning of a potential revenue miss.
The Trade Desk's (TTD) third-quarter results are likely to benefit from strength in connected-TV ad spending, programmatic ad buying and a growing partner ecosystem.
(Bloomberg) — Carvana Co. wiped out about half of its market value in just two trading sessions as the stock plunged to an all-time low on deepening gloom about used-car sales. Most Read from BloombergTwitter Now Asks Some Fired Workers to Please Come BackElon Musk Tells Twitter Followers to Vote for a Republican CongressElon Musk Walks Back on Twitter Job Cuts, Blue Checks in Second WeekBillions in Capital Calls Threaten to Wreak Havoc on Global Stocks, BondsHouston Mogul’s $75 Million Win on
Shares of Sea Limited (NYSE: SE) were gaining today after the Southeast Asian gaming and e-commerce company got an analyst upgrade. In a note this morning, JPMorgan Chase analyst Ranjan Sharma lifted his rating on Sea from neutral to outperform and forecast "swift improvement" in its profitability. In its guidance back in August, management indicated it would try to stem its losses, saying, "In our efforts to adapt to increasing macro uncertainties, we are proactively shifting our strategies to further focus on efficiency and optimization for the long-term strength and profitability of the e-commerce business."
SoFi's (NASDAQ: SOFI) bank charter is helping it gain customers and a lower-cost funding source. The momentum is fueling revenue and profit growth. This video will highlight SoFi stock's efforts to attract more than 10 million customers.
STOCK ALERT Tesla stock fell again Monday—and shares have dropped below a key level that suggests more downside could be ahead. Tesla stock (ticker: TSLA) is coming off a brutal Friday. The stock opened higher to start the new week—up 0.
Durable coronavirus stock Moderna (NASDAQ: MRNA) rose by over 3.5% in price on Monday, nearly quadrupling the percentage gain of the S&P 500 index on the day. The move followed news that the company racked up yet another approval from a healthcare authority for a new booster version of its Spikevax coronavirus vaccine. Late Friday after market hours, Moderna announced that the second of its two bivalent booster vaccines targeting the coronavirus had been authorized for use in Canada.
Oncolytics Biotech® Inc. (NASDAQ: ONCY) (TSX: ONC) today announced recent operational highlights and financial results for the third quarter ended September 30, 2022. All dollar amounts are expressed in Canadian currency unless otherwise noted. users have recently been watching Devon Energy (DVN) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.


Add a comment