The Interchange: The Evolution of Crypto Lending

This may seem obvious to some, but it's worth remembering it wasn't that long ago when the crypto industry at large was up in arms over the launch of BlockFi's interest-bearing deposit accounts that would (initially) pay 6.2% on Bitcoin and Ether deposits. Of course, these deposits are still very much uninsured outside of small pockets of custodian insurance — which hardly covers a meaningful portion of the entire asset book.

At the time, I admitted that I did not foresee the pushback that BlockFi received upon its initial interest program announcement, but was reminded that the crypto industry is in a constant two-sided education battle in not only reaching and bringing new users up to speed but also an industry relearning everything financiers have spent the last century discovering. As Matt Levine likes to say, "re-learning the lessons of financial history in a sped-up way."