New York-based crypto loan startup BlockFi has closed a $4 million convertible debt fundraising round led by Akuna Capital, with notable participation from Galaxy Digital Ventures, Morgan Creek Digital, and Devonshire Investors, the private equity group affiliated with FMR LLC, the parent company of Fidelity Investments.
— BlockFi (@TheRealBlockFi) December 12, 2018
According to the announcement, the injected capital will go towards BlockFi’s team growth and the launch of new products, including crypto-backed credit cards, a portfolio line-of-credit and most notably, an interest-earning crypto savings account that is due to launch in Q1 2019.
“We’re thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants,” said BlockFi CEO Zac Prince. “Our pragmatic approach to fundraising and team building has enabled us to continue growing through negative market conditions. We are excited to execute on plans to bring new products to market and continue to add more value for our clients.”
For Fidelity, this is the second major crypto investment in a matter of weeks. Most recently, Fidelity joined the $27.5 million Series B of ErisX, a new regulated crypto derivatives exchange that is planning to offer digital futures and spot trading.
This most recent raise also featured participation from Susquehanna Government Products, LLLP, CMT Digital and Recruit Strategic Partners.
Similar: BlockFi just gathered up $50 million to lend to bitcoin and ethereum holders who don’t want to cash out (yet)
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.