Three Days After FTX’s Bailout, BlockFi Raised Rates

BlockFi is raising the yield on its lending products for Bitcoin, Ethereum, and Stablecoins three days after acquiring a $250 million revolving line of credit from FTX.

The impact of effective risk management – BlockFi

The loan packages offered by BlockFi will soon have higher interest rates. According to its official Twitter account, the cryptocurrency lending company will be increasing its rates on all tiers for Bitcoin, Ethereum, and other stablecoins like USDC, USDT, GUSD, PAX, and BUSD.

Stablecoins will see a jump in yield from 0.5 to 3%, Bitcoin from 0.5 to 1.9%, and Ethereum from 0.5 to 1.75%. As a result, the exchange rates for Bitcoin, Ethereum, and stablecoins range from 2 to 3.5%.

July price increase

The price increase will become effective in July. Additionally, the business will lower withdrawal fees by $1, $2, and $25 for Bitcoin, Ethereum, and stablecoins, respectively. On the other hand, the business will completely abandon its “one free withdrawal per month” strategy.

Notably, the $250 million loans the company obtained from the cryptocurrency exchange FTX three days earlier were not included in the report. The loan extension has “bolstered” the company’s balance sheet and platform strength. The company had already laid off 20% of its workforce and repaid a debt it had given to renowned bitcoin hedge fund Three Arrows Capital.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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