Customers of Fidelity Digital Assets, a subsidiary of the investing giant, will now be able to get cash loans by placing their Bitcoin (BTCUSD) as collateral with its digital asset custody solution. The company has linked up with crypto-lending service BlockFi, which will provide the cash loans, for the service.
Customers of both firms can receive 60% of the total amount for a cash loan, if it is backed by a digital asset. But that percentage figure is not set in stone. Zac Prince, CEO of BlockFi, told Bloomberg that there was “room for client-level customization (in the loan terms) and (the program) may be adjusted to meet the needs of large firms.”
- Fidelity Digital Assets will act as custodian for cash loans offered by crypto-lending service BlockFi.
- This is the investment giant’s first foray into crypto-lending, an industry that is rapidly growing in size.
- Fidelity’s announcement comes at a time of increased interest in Bitcoin as an investment tool.
This is the first such partnership that Fidelity has inked with a crypto-lending service. “For Fidelity Digital Assets, this is an exciting first step into supporting the