BlockFi is a cryptocurrency exchange and wallet that serves individuals and businesses worldwide. It offers an interest-earning account, portfolio-backed loans, and fee-free trading.
As with many of the best cryptocurrency exchanges, you can fund your account with USD, crypto, or stablecoins.
BlockFi Interest Account
This interest-bearing account holds coins you’ve deposited or purchased on the exchange. It works much like a traditional savings or investment account. One big difference is that money you put in a bank account would be protected up to $250,000 against bank failure through FDIC insurance. Similarly, any cash in a brokerage account would be protected by SPIC insurance. But if you put your savings into a BlockFi Interest Account, you don’t have these protections.
You’re limited to one crypto withdrawal and one stablecoin withdrawal per month. After that, you’ll pay a fee for each withdrawal. You can make automatic transfers to any bank account connected to Plaid, a company that allows apps to securely transfer data to and from your bank.
You can also set up a business or corporate account. It functions the same way as an individual BlockFi Interest Account but is in the entity’s name. It requires additional documentation and a longer verification process. Once you apply, a member of BlockFi’s compliance team will contact you to help with the rest of the sign-up process.
It pays these interest rates:
- Bitcoin (up to 2.5 BTC): 6%
- Bitcoin (more than 2.5 BTC): 3%
- Ethereum: 5.25%
- LINK: 5.5%
- PAX Gold: 5%
- Litecoin: 6.5%
- Paxos Standard: 8.6%
- USDt: 9.3%
- USDC, GUSD, and BUSD: 8.6%
Interest begins to accrue the day after you deposit and compounds monthly.
BlockFi pays interest by lending assets to institutional and corporate borrowers with high collateral. It stores reserves — so it can fund your withdrawals — with New York trust company, Gemini, and other third parties.
The BlockFi Interest Account is available to customers in most countries and in all U.S. states except New York.
Use funds from your BlockFi Interest Account to purchase cryptocurrency on BlockFi’s exchange without fees. You’ll have daily trading limits based on your account size and activity.
To make a trade, simply log into your BlockFi account, and enter the buy or sell amount and currencies, and authorize the trade. You can make a one-time trade, or automate the trade to recur daily, weekly, or monthly.
When you buy crypto on the exchange, it’ll land in your Interest Account and start to earn interest right away.
Use a BlockFi loan like a personal loan to fund major purchases, refinance debt, or make a down payment on a home.
You have to use crypto assets to back the loan with a loan-to-value (LTV) ratio of at least 50% (meaning your collateral is worth at least half of what you owe). You can borrow in USD, GUSD, or USDC; and put up collateral in Bitcoin, Ethereum, or Litecoin.
You’ll pay a 2% origination fee to receive your loan, and pay interest between 4.5% and 9.75%, depending on your LTV.