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Cryptocurrency lending and borrowing service BlockFi today announced support for Litecoin and Circle’s USDC stablecoin on its platform.
BlockFi users can now trade, earn interest and obtain loans through both assets. Each currency has been added to BlockFi’s Interest Account (BIA), which allows users to garner compounding interest each month on crypto assets. USDC and Litecoin will also be featured in the company’s trading platform, which already allows investors to trade digital currencies such as Bitcoin (BTC), Ethereum (ETH) and the Gemini dollar (GUSD).
In an interview with Decrypt, Zac Prince—CEO and founder of BlockFi—explained that his company decided to add Litecoin and USDC to its platform for several reasons, including high customer demand, their trading histories, and liquidity.
“When reviewing both USDC and Litecoin, these assets scored well across key metrics relative to other alternatives, making support for the two obvious choices to expand our offerings,” Prince said.
While both Litecoin and USDC are available through the BIA, the difference in the annual percentage yields for each coin is considerable. USDC is just shy of 9 percent, while Litecoin’s is just under 4 percent. Prince said it’s far more expensive to borrow US dollars compared to cryptocurrency in the present market, which is why users stand to gain much more if they’re willing to venture into crypto territory.
“The yield on an asset is only one factor to consider, with future appreciation potential being another important metric,” he said.
BlockFi currently lends fiat-pegged stablecoins both to retail and corporate borrowers who then collateralize their loans with cryptocurrency. Even before today’s move, Litecoin was already a supported collateral type for USD loans through the company’s platform.
The New York-based crypto lender, which recently obtained a money-transmitter license in Washington State last month, plans to add support for more cryptocurrencies—including several stablecoins—in the coming months. While Prince would not go into detail, he said USDC and LTC are “only the beginning.”
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