In line with a recent ‘announcement‘ published, renowned crypto asset management firm named ‘BlockFi’ revealed that its interest bearing accounts now support the GUSD [Gemini Dollar].
According to the announcement, GUSD deposits see a yearly yield of around 6.2%, paid within the ‘stablecoin‘ in question. BlockFi adds that it additionally offers GUSD as a USD funding option and as collateral from institutional crypto borrowers. BlockFi’s chief executive officer named ‘Zac Prince’ said:
“The implication of adding this new option is that you could see crypto firms like BlockFi complete with the standard traditional fintech challenger banks by taking advantage of assets like Bitcoin [BTC] for on-ramps in to a dollar-based ‘blockchain‘ financial space.”
BlockFi adds that the accounts won’t be available to the users within United States due to the lack of regulative clarity encompassing stablecoins backed by fiat currency. The firm adds that it’s operating with legal counsel to add support for U.S. users later this year.
Some within the cryptocurrency space have ‘criticized‘ BlockFi, as its terms and conditions permit it to determine the interest rate monthly at its sole discretion. David Silver of Silver Miller law firm added that the firm doesn’t advertise what it guarantees, that might be a little confusing for the users.
Earlier in March, BlockFi lowered the interest rates for its top tier Bitcoin [BTC] and Ethereum [ETH] accounts. Then later in May, the lending platform additionally ‘lowered‘ interest rates for some of tis Ethereum accounts as the lending ecosystem for Ethereum had supposedly floundered.
Also earlier this month, Korea’s oldest bank, Shinhan Bank, ‘launched‘ a blockchain-based lending platform for quick loan processes.