- LTC gets incorporation deal with BlockFi
- Issuing bank yet to be announced
Renowned crypto lending enterprise BlockFi recently announced its incorporation of LTC and BTC. BlockFi Now supports Litecoin and dollar-backed stablecoin USD coin (USDC) on its platform. The incorporation will allow users to earn interest on trade and receive loans backed by the assets. The primary annual percentage revenue on the assets will be 8.6% for USDC and 3.78% for LTC.
In 2020, the company aims to incorporate 5-10 new assets including USDC and LTC. The platform is aiming at the top 20 cryptocurrencies by market cap and U.S dollar-backed stablecoins, USDC is the biggest of these stablecoins.
According to the CEO and Founder of BlockFi, Zac Prince, the company already supported LTC as collateral for loans and approved of the currency’s volatility, liquidity, and general track record. BlockFi also plans to create a mobile application and the capability to send fiat wire transfers in the Q1 of this year. In the Q2 of 2020, it will provide Automated Clearing House (ACH) payment abilities and in the second half of the year, BlockFi plans to release a credit card that provides rewards in BTC.
Zac Prince went thus:
“Most of the cards that exist now are debit cards or pre-paid cards … for prime consumers in the U.S., the vast majority of spending takes place on credit cards. This will be a premium credit card that can pass back a bitcoin cashback rate that is attractive with traditional premium cards.”
Issuing bank yet to be announced
The issuing bank for BlockFi’s credit card or the banks that would be providing the ACH services is yet to be made public. Though, BlockFi already works with Valley Bank, brokerage Oppenheimer & Co, investment bank, signature bank, and Silvergate Bank.
Since the beginning of last year, BlockFi has been providing fiat loans with BTC and ETH collateral. In March last year, it releases its service offering to pay customer’s interest in their crypto, which is loaned out to institutions.
The company has had to halter rates more than once because the borrower supply has not been able to meet depositor demand. At first, depositors received 6% monthly and 6.2% in compound interest yearly. In April, the company changed the rules for accounts with over 25 BTC or 500 ETH, stating they would receive 6% monthly only on the part of their holding below that edge. In May, the maximum balance for which it will offer 6.2% annual interest declined further to 250 ETH and subsequently to 5 BTC and 200 ETH.
Litecoin (LTC) Price Today – LTC / USD
In December, the BlockFi made the terms more flexible and favorable to users, using the 6.2% rate annually. For ETH, deposit below 1,000 ETH earned 4.1% annually and every transaction above 0.5%.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.