XRP Launching on USD-to-Crypto Lending Platform, Joining Bitcoin, Ethereum and Litecoin
Crypto lending platform BlockFi is planning to add XRP to its short list of supported cryptocurrencies.
According to CEO Zak Prince, the company focuses on liquidity, volatility and consumer demand as the three key criteria for coin selection. Currently, users can borrow US dollars by using three cryptocurrencies as collateral: Bitcoin, Ethereum and Litecoin. The company offers loans from $2,000 at 4.5% interest rate.
XRP will be added to the platform in April or May, reports Cointelegraph Japan.
Last year, the New York-based startup raised $52.5 million to expand its crypto-lending operations.
The funding round was led by Galaxy Digital, the digital currency and blockchain technology investment firm founded by Bitcoin king Mike Novogratz. ConsenSys Ventures also contributed, making BlockFi the industry’s first institutional investment in crypto-backed loans.
BlockFi clients are using crypto asset-backed loans to launch startups, pay down higher-cost debt and to diversify their portfolios with real estate assets and other traditional investments.
CEO and co-founder Zac Prince says the company’s goal is to create a lending platform that looks like a traditional large scale creditor.
“The support we’ve 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.”
The company currently operates in 44 states, after adding California back in January.