BlockFi Crypto Deposit Service Will Reduce Rate Due To Inflow Of Institutional Clients
Launched under general approval this month, BlockFi’s crypto deposit service changes the terms of service, CoinDesk writes.
Starting from April 1, users with more than 25 BTC or 500 ETH on their accounts will be able to claim only two percent payments, not six percent, as originally promised..
“Due to demand, we are making several changes to our product that will take effect in April,” the company said..
The rate for smaller accounts will still be 6%.
BlockFi CEO Zach Prince said the changes are driven by an unexpectedly high level of demand from institutional investors. “We have seen a sharp increase in institutional participation on a scale that BlockFi and the existing cryptocurrency lending market at 6% are unable to serve. We have found institutional accounts with deposits well over $ 1 million. We do not currently rely on such clients and do not want the activity that stems from them. In the future, we can create structures that will allow serving this activity through other tools. “.
Fewer than 50 customers, or about 1% of the total user base, will see the change, Prince says. As previously noted, BlockFi reserves the right to change the interest rate at any time..
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