BlockFi has begun to offer loans backed by Litecoin and Gemini Dollars

16 Oct, 2018
by David Borman
News
BlockFi has begun to offer loans backed by Litecoin and Gemini Dollars

It is being reported by Bitcoin Magazine that the crypto-to-dollar lender BlockFi has begun to offer loans using Litecoin and Gemini Dollars as collateral. It previously only accepted Bitcoin and Ethereum.

BlockFi was founded in 2017 and currently operates in 40 states. Its business model has esssentially been to accept crypto as collateral and give out loans in USD. Until recently only BTC and ETH were accepted as collateral and only USD paid out for loans. That has changed with the addition of support for LTC and GUSD. In fact, GUSD can be used both for collateral as well as the payment of the loan.

Before, if the user wanted their loan in dollars, they could only receive it during standard business hours of 9AM-6PM. Since GUSD is traded on exchanges that are 24/7, it can be delivered at any time.

BlockFi sees this as a step towards eventually supporting all top 10 cryptos as collateral. According to Zac Prince, BlockFi CEO:

“Litecoin was recently added to Gemini and has a long history of price appreciation... Having large, imbedded capital gains is one of the motivating factors for considering a loan backed by crypto. Litecoin also has strong liquidity with USD pairs in multiple trading venues.”

This is another step in adding liquidity to the crypto market. Stay tuned to Chepicap to learn when new cryptos become available for collateral!

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Read more about: Litecoin (LTC)

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