Cryptocurrency wealth management solution BlockFI has collected $18.3m in its Series A led by Valar Ventures.
Commitments also came from Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Akuna Capital, Avon Ventures, Susquehanna, CMT Digital, Morgan Creek and PJC.
Following the close of the round, the company hopes to add new products to its platform, including interest-earning accounts for Bitcoin and crypto-backed USD loans.
The US-based company helps consumers use their cryptocurrencies to access financial products. BlockFi offers an interest account which lets token holders earn monthly compound interest payments in the specified asset type.
Another service offered by BlockFi is crypto-backed loans. This lets borrowers access liquidity without having to sell their tokens, but instead use them as collateral. A consumer can access 50 per cent of their asset value on the same day.
“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,” said James Fitzgerald, general partner at Valar Ventures.
This investment comes just over a year since its former round. The company previously raised $52.5m from digital currency and technology investor Galaxy Digital Ventures, ConsenSys and PJC.
Last year, Valar Ventures closed its fourth flagship fund on $133m with commitments coming from at least 35 LPs.
The firm has made a handful of FinTech investments this year, most recently supporting tax returns mobile assistant Taxfix. The startup lets users to digitally send their tax returns and digitally scan documents to retrieve the necessary information.
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