Crypto lender BlockFi has secured a $250 million revolving line of credit from crypto exchange FTX, CEO Zac Prince announced Tuesday morning on Twitter.
“Today @BlockFi signed a term sheet with @FTX_Official to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength,” he wrote in a Twitter thread.
Prince said the proceeds from the FTX loan are contractually subordinate to all client balances, meaning that BlockFi will satisfy its obligations on client accounts—BlockFi Interest Accounts, BlockFi Personalized Yield and loan collateral—before paying FTX.
Today @BlockFi signed a term sheet with @FTX_Official to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.
In his announcement of the line of credit, Prince hinted that it could open the door to a partnership between FTX and BlockFi.
“This agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services,” he said on Twitter.
The feeling seems to be mutual. Yesterday, FTX CEO Sam Bankman-Fried said the cryptocurrency exchange has a "responsibility" to bail out struggling companies during this unrelenting bear market.
"Even if we weren't the ones who caused it, or weren't involved in it," he said, referring the wave of "contagion" that's impacting crypto markets. "I think that's what's healthy for the ecosystem, and I want to do what can help it grow and thrive."
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