Zac Prince, Co-Founder & CEO of BlockFi: The Future of Crypto Lending

— BlockFi offers two main products: a lending service allowing users to borrow USD against crypto collateral at rates as low as 4.5% annually, and an interest account paying 6–8.6% annual returns depending on the asset deposited.

— BlockFi has removed account minimums and withdrawal fees effective immediately, lowering barriers to entry for retail participants holding smaller amounts of Bitcoin or Ether.

— The company uses Gemini as its custody partner, which holds assets in cold storage and carries insurance against hacks; BlockFi never holds private keys.

— BlockFi finances primarily market-making and proprietary trading firms rather than crypto-native companies, reducing counterparty risk through over-collateralization and rigorous KYC/financial diligence.

— Interest Payment Flex allows users to receive interest in any supported asset (Bitcoin, Ether, or GUSD) regardless of what they deposit, enabling tax and portfolio management strategies.

— BlockFi has raised an $18.3 million Series A led by Velvet Ventures and backed by Galaxy Digital, Fidelity, Susquehanna, and Acuna Capital; the company plans to grow from 50 to 100–125 employees by end of 2020.

— GUSD stablecoins carry the highest interest rate (8.6% APY) due to higher dollar demand in crypto markets and CME futures contango implying ~10% implied interest rates.

— Bitcoin interest rates (6.2% APY on balances up to 10 BTC) have remained stable since launch; rates are locked month-to-month and reviewed by customer survey feedback.

— Market sentiment is bullish; demand to borrow Bitcoin is currently lower than demand to earn interest on it, creating a supply-demand imbalance that influenced the tiered rate structure.

— Depositing stablecoins (GUSD) at 8.6% interest and electing to receive interest payments in Bitcoin creates a leveraged upside play: you earn dollar-denominated interest while capturing potential Bitcoin price appreciation as the received BTC compounds.

— Use Interest Payment Flex to generate a passive monthly cash stream in GUSD/USD from Bitcoin holdings without selling, deferring capital gains taxes while maintaining long-term price exposure.

— The removal of minimums means any amount—even $10–$25—now qualifies for interest-bearing accounts, making BlockFi accessible to retail participants previously locked out by the 0.5 BTC minimum.