Crypto lender BlockFi announced it is increasing deposit rates for certain crypto tokens. Along with that, the company terminated a rule allowing one free withdrawal each month.
According to a filing with the SEC, BlockFi will increase deposit rates for BTC, ETH, USDC, GUSD, PAX, BUSD, and USDT.Â
BlockFi is also removing the one free withdrawal per month rule applied to some digital assets while reducing withdrawal fees for BTC, ETH, and stablecoins.
All three of these new modifications will become effective from July 1st, 2022!!
Effective risk management, decreasing market competition, and a changing macro yield environment are the three reasons given by BlockFi for the deposit rate increase.
In terms of risk management, the company bragged that its previous cautious rate policy had given it the flexibility to increase rewards for consumers in this market slump.
“We’ve maintained 100% uptime of our retail platform and institutional lending desk while risk management issues have led competitors to slow down or pause operations” BlockFi stated as evidence of a decrease in market competition.
With regard to the macroeconomic environment, BlockFi emphasized that the sharp increase in U.S. Treasury yields had a positive impact on deposit rates as well as lending rates.
This new announcement was made just after BlockFi received a $250M revolving credit line from FTX. Two weeks back, BlockFi laid off 20% of its workforce of approximately 170-200 employees amid the ongoing crypto winter.
