BlockFi Offers Crypto-backed Loans to Borrowers

Zac Prince, founder, and CEO of BlockFi believes that the startup can service an emerging market which is currently neglected by traditional lenders. In an interview with Bitcoin Magazine, “Banks are very slow moving and risk-averse,” said Prince. “Even in markets where there isn’t a regulatory concern, like unsecured consumer or student lending, there is room for non-bank lenders like SoFi and Lending Club to build large businesses.”

Blockfi’s origins began with Prince’s difficult loaning experience with traditional banks. He listed bitcoin as an asset, in the hope of receiving loan approval. The bank, however, did not acknowledge bitcoin as an asset, especially since it’s strongly associated with money laundering, drugs, and crime. It was during Prince’s difficulties that he saw an opportunity to serve borrowers who wanted to use their cryptocurrency assets as collateral.

Prince co-founded BlockFi with Flori Marquez, receiving seed funding of $1.55m on February 13, 2018. BlockFi’s strategic partners include PJCConsenSys Ventures, Kenetic Capital, SoFi, Purple Arch Venture, and Lumenary.

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