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  • BlockFi, the cryptocurrency lending startup, has launched a crypto deposit account that provides compound interest.
  • Some of the leading investors in the startup include Mike Novogratz’s Galaxy Digital Ventures and Anthony Pompliano’s Morgan Creek Digital.

BlockFi, the cryptocurrency lending startup, has launched a crypto deposit account that provides compound interest. The BlockFi Interest Account (BIA) will offer customers an annual interest rate of 6 percent, paid every month in cryptocurrency. That monthly interest is then compounded to produce a 6.2 percent annual percentage yield or APY.

Zac Prince, the CEO of BlockFi released a statement saying:

“The launch of BIA is a significant step in BlockFi’s goal of becoming the go-to provider of financial services for crypto investors. We’re excited to leverage our relationships to provide yield on digital assets for crypto investors.”

The client assets are custodied at the Gemini Trust Company, co-founded by Cameron and Tyler Winklevoss. Gemini is regulated by the New York State Department of Financial Services.

Earlier in December, BlockGi had raised $4 million in a round led by Akuna Capital. Some of the leading investors include Mike Novogratz’s Galaxy Digital Ventures and Anthony Pompliano’s Morgan Creek Digital. Pompliano himself tweeted about the launch saying:

“BANG BANG!

@TheRealBlockFi is launching a Bitcoin and Ether deposit account today where you get paid 6% annual interest, compounding monthly, paid in cryptocurrency.  

Bringing the HEAT on a Tuesday “