(Updates: BlockFi announced that they will pay 9% APY on stablecoin balances up to $40,000 as of 11/1/21, up from 8.25% APY for October. BlockFi credit card now has no annual fee and offers 3.5% back in Bitcoin for first 3 months and a rebate on BTC trades. The credit card also adds another 2% APY to your stablecoin interest earned. Also, earn 0.5% back on recurring crypto purchases set up by 10/31/21.)
BlockFi Interest Account bonus. Receive
- Deposit $25 to $1,499 Get $15 in BTC.
- Deposit $1,500 to $19,999, Get $20 in BTC.
- Deposit $20,000 to $39,999, Get $40 in BTC.
- Deposit $40,000 to $74,999, Get $75 in BTC.
- Deposit $75,000 to $99,999, Get $150 in BTC.
- Deposit $100,000+, Get $250 in BTC.
This must be your first deposit, and you must make the qualifying deposits within 30 days of account opening. The required holding period is roughly 3 months. This one is an affiliate offer and you should see the promo code partner250 auto-filled on your application.
BlockFi now supports instant ACH transfers from your bank account. You can start earning interest on your funds or start trading immediately. Note that BlockFi may requires your deposits to stay there for at least 60 days:
BlockFi credits this bank transfer instantly (so you have the ability to trade and earn interest on those funds), however it generally takes 2-3 business days for the funds to be removed from your bank account. We require that you keep enough funds in your bank account to cover any bank transfers we have credited in our platform.
While we do not have a policy to hold these funds for 60 days, if we see certain behaviors such as attempting to withdraw all funds from the platform including value added via bank transfer we may put a hold on the value of the bank transferred funds for up to 60 days.
BIA interest rates. As of 10/1/2021, the BlockFi Interest Account (BIA) currently pays 4% APY on up to 0.1 Bitcoin (BTC) and 8.25% APY on up to $40,000 of USDC/GUSD stablecoins (subject to change on a monthly basis). There are no trade requirements, but when you deposit USD it will be converted to the GUSD (Gemini stablecoin) by default. (You can then use it to buy USDC or something else if you wish.)
Blockfi has announced the following new rates effective 11/1/2021, notably 9% APY on the first $40,000 of GUSD and USDC:
Their overall business model is to earn a spread on the difference between lending out money and paying interest.
To earn interest on crypto, we lend assets to highly vetted and audited institutional counterparties. The interest we are able to pay is based on the yield that we are able to generate from lending, which directly correlates to the market demand in the space (I.e. what rate institutions are willing to pay to borrow specific crypto assets, as it varies from asset to asset).
One free crypto withdrawal per calendar month and one free stablecoin withdrawal per month. After that, additional stablecoin withdrawals are $0.25 each.
Earn 0.5% back on recurring crypto purchases. Another current promo is that if you set up recurring purchases of crypto, they will give you 0.5% back in stablecoin. Note that you can’t buy stablecoins, but you can buy other crypto like BTC and ETH.
*Clients who set up qualifying repeat trades during the promotion period (09/30/21 00:00:00 – 10/31/21 23:59:59 UTC) are eligible to get 0.50% back in stablecoin on all qualified trades. Note: stablecoin to stablecoin trades do not qualify.
Qualified repeat trades must be established within the promotion period, and be maintained without cancelling or changing until 11/30/21. Traded value will be tracked as the sum of all qualifying trades executed during the promotion period (09/30/21 00:00:00 – 11/30/21 23:59:59 UTC). Bonuses will be credited on or before the second Friday of the month in December, 12/10/21. This offer cannot be combined with other trading offers. Any recurring trades changed or cancelled by BlockFi on behalf of the client may still be eligible to receive 0.50% back in stablecoin for the time the trade was active at the discretion of BlockFi. Trading qualifications are dependent upon geographical or regulatory restrictions. Terms subject to change.
Blockfi credit card. The new
- Earn 3.5% back in bitcoin on all purchases in the first 90 days of card ownership after activation, up to $100 in bitcoin.
- 2% extra APY on your stablecoin holdings
- Earn 0.25% back on all eligible trades, up to $500 in BTC each month.
- Earn 1.5% back in bitcoin on every purchase.
- Earn 2% back in bitcoin on every purchase over $50,000 of annual spend.
- No annual fee.
BlockFi is definitely one of the more well-established crypto sites, but you should do your own due diligence as it is not an FDIC-insured bank account nor a SIPC-insured brokerage account. I found that they were backed by some reputable firms including Fidelity Investments and Coinbase, with over
I hold some GUSD/USDC stablecoins and some crypto, but I consider them both forms of speculative investments. I’ve written about stablecoins in the past, but I like the analogy from Matt Levine of Bloomberg that stablecoins are like the casino chips of the crypto world since traditional banks won’t interact with them. Stablecoins are like casino chips. They said $1 on them, but you have to trust the casino to convert them back to cash. Thus, I would only hold casino chips from a stable casino where I am confident that I can cash them out again for US dollars. I find it both intriguing and wary that my cash is earning 9% APY here, but I also know I would much prefer holding them at BlockFi which has been valued as a
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