Cryptocurrency-backed money lending platform Blockfi has announced that they have received approval to operate in California.
The addition of California extends BlockFi's reach to 44 states, making it the most widely available crypto-to-USD lending service in the United States.
Blockfi acts as a facilitator for its customers to get dollars by using BTC and ETH as collateral. Once a user's loan is approved, Blockfi transfers the loan amount in US dollars to the customer's bank account. Blockfi users make monthly payments in USD or crypto and can get the original funds back after paying off the loan.
BlockFi said its goal from the beginning has been to bring affordable debt products into the crypto-ecosystem. The company claims that it offers the most competitive rates in the U.S. market and will expand to other markets soon. "With interest rates ranging from 10-13.5%, it's becoming easier and easier for people to leverage their cryptoassets without having to sell or miss out on the future upside value of their cryptocurrency investments," Blockfi said in a statement announcing the license approval for California.
BlockFi also announced plans to extend its debt and lending services into additional products and geographies. "In the near-term, BlockFi will support more cryptoassets as collateral and offer new credit products, such as crypto-backed credit cards," it added.
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