Cryptocurrency lending startup BlockFi secured a $250 million credit line with cryptocurrency exchange FTX to bolster its balance sheet and provide long-term stability.
BlockFi CEO and co-founder Zac Prince said in a press release on Tuesday (June 21) that the credit facility strengthened the company’s commitment to its clients and to the protection of their funds.
He added that the agreement “unlocks future collaboration” between both firms and is also a “significant step forward,” as both BlockFi and FTX continue supporting the “strength and accessibility of cryptocurrency markets.”
See also: Sam Bankman-Fried’s FTX Aims to Become the ‘Everything App’
Headquartered in Jersey City, New Jersey, and co-founded in 2017 by Prince and SVP of Operations Flori Marquez, the startup provides credit services to markets with limited access to simple financial products and pairs competitive rates with institutional-quality benefits.
BlockFi is striving to connect cryptocurrencies to 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.
Read more :FTX Founder Says Bitcoin Fails as Payments Network
“BlockFi’s team has always demonstrated a strong bias towards prudent risk management and swift action. Protecting customer assets is their top priority, which allows them to operate from a position of strength,” said Samuel Bankman-Fried, CEO and co-founder of FTX.
The credit facility term sheet is pending the finalization of documents, anticipated in the next few days, per the release.
Related: Bankman-Fried Bails Out Crypto Broker Voyager and Blames Fed for Downturn
Bankman-Fried’s Alameda Research extended a $200 million credit facility to crypto broker Voyager last week. The facility is in a mix of cash and the USDC stablecoin, and will also include a revolving line of credit for 15,000 bitcoins, which were worth around $285 million as of Saturday (June 19).
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