BlockFi, the US-based operator of a cryptocurrency-based lending platform, received $52.5m in funding from investors including blockchain software provider Consensys on Tuesday.
Blockchain and cryptocurrency-focused investment firm Galaxy Digital Ventures led the round, which also featured venture capital firm PJC.
Founded in 2017, BlockFi has built an online platform that enables individuals or organisations the opportunity to issue dollar-based loans using their holdings in digital currencies such as Bitcoin or Ether.
The company claims to offer the lowest rate for cryptocurrency-to-dollar borrowing in addition to having the most state lending licences of anyone in the sector.
Zac Prince, co-founder and chief executive of BlockFi, said: “Galaxy’s investment and decision to make us their exclusive consumer lending partner is a strategic step towards BlockFi delivering large scale credit across the crypto ecosystem.
“The support we have seen from existing clients and investors highlights the strong demand for leveraging Bitcoin and Ether for low-cost USD loans. We look forward to expanding our services to support more cryptocurrencies and geographic markets in the near future.”
BlockFi had raised almost $1.6m from Consensys, which invested through its Consensys Ventures, unit, as well as online lending platform SoFi, PJC, Kinetic Capital, Purple Arch Ventures and Lumenary in February this year.