BlockFi's crypto lending platform has raised $50M in investment led by Morgan Creek Digital. Other investors include CMT Digital, Winklevoss Capital, Castle Island Ventures, Valar Ventures, and two university funds.
The organization gathered funds at a $400M valuation. BlockFi CEO Zac Prince said the new investment would better capitalize on the business and accelerate the launch of new products. The company plans to release its bitcoin credit card. “We are going to have to spend a lot of money on marketing,” Prince said.
The credit card launch fits in with BlockFi's broader plan to become a one-stop digital asset finance platform. Last year the firm introduced its brokerage service and released its application.
The money can also help the company compete with cryptocurrency companies with a much larger user base. Coinbase, which is a BlockFi investor, announced this month plans to launch a lending service for its U.S. retail customers. The Blockchain company recently raised the rates for BTC and stablecoin deposits on its platform.
“Coinbase wants to launch a product that we launched in 2018. This is a good move, and I hope they try to recreate every product that BlockFi has, ”said Prince. “Financial services and cryptocurrencies are developing insanely fast. That is the environment in which we need to stay sufficiently capitalized to maintain the edge.”