BlockFi, the famous cryptocurrency loan service, has decided to go beyond its borders and try new markets.
The crypto industry has advanced dramatically and, with it, various instruments associated with cryptocurrencies have emerged that provide important market dynamics. Following this pattern, BlockFi has launched a trading platform without commissions, called BlockFi Trading, in which users can exchange Bitcoin, Ethereum and Gemini Dollar in real time.
The company has forged its own reputation throughout the 3 years it has been operating by offering investors a way to obtain returns from their cryptocurrencies without being forced to sell them to achieve it, which was very well received by the market.
So now, after three years offering the possibility of acquiring crypto loans and obtaining interest on their deposits, platform users will have at their disposal an additional option: buy or sell cryptocurrencies. Initially, as mentioned earlier, at the time of launch, BTC, ETH and Gemini USD will be admitted, however it is among their plans to add the USDC in early 2020.
BlockFi customers in the 38 states will be able to access the service, however, Zac Prince, CEO of BlockFi, explained to Decrypt that among its plans it is also expanding to other states but for this it must be approved transmission licenses of money.
“To date, we have focused on providing products to existing crypto investors that are readily available to investors in other asset classes. With the launch of the negotiation, we are taking a big step in the direction of allowing new net investors to enter the ecosystem ”
A very interesting aspect that will undoubtedly call everyone’s attention is that there will be no commission fees, since, according to the information, the service will incorporate a different profit model: through the sale of data on User transactions to large companies. In this way, the company explained that the data will be anonymous when the service is operational.
Reasons after this expansion
It seems that the company’s decision follows its launch in October of BlockFi Institutional Services, which were “designed to give market makers, funds, exchanges and family offices access to business-grade financing solutions for digital assets.”
In this way, BlockFi, established in mid-2017 and which saw significant growth in its first two years, has launched BlockFi Trading with the aim of offering its global user base of individual and institutional investors in cryptocurrencies the ability to optimize their allocation of assets.
So, Prince offered two reasons that motivated the decision. First, Prince explains the feedback of existing customers. This is linked to the survey that the company previously conducted in which it was discovered that users tended to withdraw their cryptocurrencies for commercial purposes.
“Our existing user base wanted to trade and requested that we create a product to operate on our platform..”
Prince also stated that the initiative is projected to attract new investors to the crypto ecosystem. Argument that is in line with the strategy plan drawn up by the company, given that, according to Prince, this two-phase account. The first phase consisted of introducing basic products for those people who were already participating in the crypto universe; Therefore, the second phase is precisely to expand its products for those customers who at the moment have not been familiar with cryptocurrencies.
It should be noted that Prince announced that the strategy of the company of which he is founder, BlockFi, was inspired by the widely disseminated Masterplan of Tesla CEO Elon Musk.
According to the announcement, BlockFi will add more options for accounts and operations that accrue interest. Therefore, as of December 11, the company’s users will be able to deposit and buy USDC and Litecoin.