Coinbase Ventures is joining the growing list of investors backing crypto lending, providing an extension of BlockFi's $4 million convertible note issuance in December.
Other participants in the extension include Able Partners, with the structure of the deal unknown at this time. The firm declined to comment on how much the two new backers invested.
As reported by Bloomberg, BlockFi has seen its revenues and customer-base grow 10-fold since June, riding a bullish wave sweeping crypto lending firms. A diverse set of investors have picked up on the New York-based firm's successes. The firm has raised nearly $60 million to date — a mixture of lending and equity capital — with a roster of investors that includes the likes of Fidelity, Susquehanna, and SoFi; among other mainstay crypto names like ConsenSys and Mike Novogratz’s Galaxy Digital, which previously backed the firm in a $52.5 million round in July.
Currently, BlockFi lends fiat to individuals and companies holding crypto. With the new funding from Coinbase and Able, the firm is better positioned to execute its lofty ambitions for 2019. As first reported by The Block in December, BlockFi intends to launch a credit card product and an interest-earning savings account for crypto in 2019, while also continuing to deepen its institutional ties. The firm expects to use the recent extension from Coinbase Ventures and Able Partners to fund their product suite, as well as grow the team and further general operations, rather than directly fund new loan growth.
BlockFi could also form strategic partnerships with its new investors, according to Zac Prince, CEO of BlockFi. Meanwhile, BlockFi aims to prioritize servicing the platform internationally. "In addition to growing our product set, one of our big focuses for this year is internationalizing the platform and we look forward to offering better support for the EU, LatAm and the Japanese market soon," said Prince.
Frank Chaparro contributed to this report.
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