Cryptocurrency lending platform BlockFi has signed key crypto exchange FTX and termsheets to secure a $ 250 million revolving credit line, BlockFi CEO Zac Prince announced on June 21.
today @BlockFi And sign the term sheet @FTX_Official To secure a $ 250 million revolving credit line that provides access to capital that further strengthens the balance sheet and platform strengths.
— Zack Prince (@BlockFiZac) June 21, 2022
According to Prince, the agreement will give BlockFi access to additional capital, which companies will use to strengthen their balance sheets.
Credit facility revenue is contractually dependent on all client balances on all BlockFi accounts. These include BlockFi Interest Account (BIA), BlockFi Personalized Yield (BPI), and BlockFi Loan Collateral. BlockFi will use revenue to strengthen its business as the bear market continues to devastate crypto space.
BlockFi aims to keep users’ funds safe
Prince said the transaction underscores BlockFi’s efforts to serve customers and secure their funds.
Last week, the Celsius Network suspended withdrawals, swaps, and transfers on the platform due to liquidity issues. Due to the spillover effect, crypto hedge fund Three Arrows Capital (3AC) faced liquidation after being unable to respond to margin claims from creditors.According to the Financial Times reportBlockFi was one of the lenders who liquidated 3AC.
BlockFi did not confirm its role in the liquidation of 3AC, but Prince said it had liquidated a large counterparty after the company did not respond to the margin claim. He did not reveal the name of the counterparty. However, Prince argued that BlockFi was the first lender to liquidate a third party and was able to keep its customers’ funds safe by acting swiftly.
