Cryptocurrency Lending Startup BlockFi secured a $250 million line of credit with cryptocurrency exchange FTX to bolster its balance sheet and provide long-term stability.
CEO and co-founder of BlockFi Zac Prince said in a Press release Tuesday, June 21, that the credit facility reinforced the company’s commitment to its customers and the protection of their funds.
He added that the deal “unlocks future collaboration” between the two companies and is also a “significant step forward” as BlockFi and FTX continue to support “the strength and accessibility of cryptocurrency markets.” .
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Based in Jersey City, New Jersey, and co-founded in 2017 by Prince and SVP of Operations Flori Marquezthe startup provides credit services to markets with limited access to straightforward financial products and combines competitive pricing with institutional-grade benefits.
BlockFi is working to connect cryptocurrencies with traditional financial and wealth management products, with the goal of advancing the overall digital asset ecosystem for individual and institutional investors, according to its website.
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“The BlockFi team has always demonstrated a strong penchant for careful risk management and quick action. Protecting clients’ assets is their top priority, allowing them to operate from a position of strength,” said Samuel Bankman-Fried, CEO and co-founder of FTX.
The term sheet for the credit facility is pending finalization of documents, expected in the coming days, according to the release.
Related: Bankman-Fried bails out crypto broker Voyager, blames Fed for slowdown
Bankman-Fried’s Alameda Research extended a $200 million credit facility to crypto broker Voyager last week. The facility is made up of a mix of cash and USDC stablecoins, and will also include a revolving line of credit for 15,000 bitcoins, worth approximately $285 million as of Saturday, June 19.