Thank you for being a part of the BlockFi community. We launched the interest account in February of 2019 with a 6.2% APY on Bitcoin that stayed the same for an entire year. Aside from rates, one thing we are very proud of is that we have maintained an incredibly high level of client service throughout a period of tremendous growth. We may be the only crypto company with a phone number on our website that you can call and speak to someone within seconds.
I wanted to personally reach out to you as the new rate changes we announced yesterday will affect your account starting February 1st. We pride ourselves on transparency, so I wanted to take a moment to explain our price adjustments and how that fits in to our company’s long-term vision.
As you may know, the interest we pay is based on the yield that we generate from lending crypto, which directly correlates to market demand to borrow crypto. On a daily basis the rate institutions are willing to pay varies from asset to asset. It is our job to find the best prices available, and offer it to you in the form of a simple, monthly interest payment. As crypto prices appreciated over the past few weeks, demand and rate to borrow crypto decreased.
Our goal is to build a company that can scale in the long term. We strive to continue to offer you the highest quality products and the best prices in the market. As such, we need to ensure that the prices we pay are sustainable in the long term. As part of this effort, we will continue to adjust the rates we pay across all accounts in line with market conditions. We plan to make all changes gradually and inform you of any price changes well ahead of time so that you can manage your crypto investments optimally.
Our rates remain the highest in the industry and we are the only retail-focused interest earning platform that is U.S. domiciled and regulated, institutionally backed, and that does not have a utility token. In the future, I will ensure we provide you with clarity behind our decisions and anticipated roadmap.
We welcome any feedback or questions to email@example.com.
Co-Founder, VP of Operations
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You can view our current rates here: https://blockfi.com/rates/
As we continue to scale out the BlockFi Interest Account (BIA), we are continuing to make updates to the amount of interest paid out to customers. Our ability to pay interest is tied to borrowing demand in the institutional crypto lending market. BlockFi actively lends crypto to institutions, which pay varying rates depending on the volume of crypto available and the volatility of crypto prices. In an effort to be able to pay interest to the largest amount of clients possible, rates will be updated periodically.
You can view information on our past rate changes here:
Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Crypto assets are deposited into an account with Gemini or BitGo, our primary custodians and licensed depository trusts. For more information, please see BlockFi’s Terms of Service__.