The wealth management company helping crypto investors, BlockFi, announced that it completed its Series A funding round gathering $18.3 million from investors. The investment round was led by Valar Ventures. Other companies participating included Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Akuna Capital, Avon Capital and many others. The information was released by the company on Tuesday.
BlockFi Gathers $18.3 Million In Series A Funding
Valar is a company that was founded by the recognized investor and PayPal co-founder Peter Thiel. This is the first time that Valar takes the decision to invest in the cryptocurrency market. However, Valar had previously invested in other fintech companies.
With these funds, BlockFi is expected to improve its product line up. One of the main products of the company is yield-bearing Bitcoin (BTC) deposits and it was launched back in March this year. Moreover, the firm is also offering crypto-backed loans.
In addition to it, James Fitzgerald, the general partner of Valar, explained that BlockFi’s intention is to bring cryptocurrencies mainstream.
Mr. Fitzgerald commented about it:
“Outside of all the hype and volatility of the crypto trading markets, there are teams, like BlockFi, that are building the infrastructure to allow investing in digital assets to become mainstream. We are excited to help BlockFi build robust ‘picks and shovels’ for this emerging asset class.”
The firm is also providing access to cryptocurrency users to a Crypto Interest Account in which users can gain dividends on the funds they deposit. In order to protect the funds, the firm partnered with Gemini, one of the largest and most recognized exchanges in the cryptocurrency market.
Cryptocurrency investors can use their holdings for necessary purchases and other things without having to sell all their funds. If they sell these digital assets, they would be experiencing a tax event and they could also lose the possibility to enjoy a large price increase in the market.
The firm is also working in order to remain compliant with all the regulations that apply in different jurisdictions around the world.
“We differentiated ourselves since inception by focusing on building a compliance-focused platform that aims to bridge blockchain technology with the existing financial systems of the world,” said Flori Marquez, BlockFi Co-Founder.
Furthermore, with these funds, the firm will have the possibility to improve its current services and offer new solutions to crypto users.
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