Cryptocurrency platforms have evolved rapidly, and BlockFi has remained a notable name in the space since its founding in 2017. Designed to bridge traditional finance and blockchain innovation, BlockFi offers a streamlined suite of financial tools for crypto holders. This comprehensive review dives into BlockFi’s services, security, fees, and regulatory standing—giving you a clear picture of what to expect in 2025.
What Is BlockFi?
BlockFi is a New Jersey-based fintech company founded by Zac Prince and Flori Marquez with the mission of empowering users through accessible crypto financial products. As a regulated crypto platform, BlockFi provides services such as cryptocurrency trading, crypto-backed loans, and interest-earning accounts—though some offerings have evolved due to regulatory shifts.
While BlockFi no longer accepts new U.S. clients for its interest-bearing accounts, it remains a strong option for non-U.S. residents and high-net-worth individuals seeking tailored financial solutions in the digital asset space.
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How Does BlockFi Work?
BlockFi operates as both a crypto exchange and a lending platform. It generates revenue primarily through:
- Interest rate spreads on loans
- Trading spreads (no explicit trading fees)
- Credit card interchange fees
Originally, BlockFi’s business model centered around its Interest Account (BIA), where it paid users interest on deposited crypto and then lent those assets at higher rates. However, following regulatory actions, this model has been restructured.
Today, BlockFi continues to offer competitive financial services with an emphasis on security, transparency, and user experience.
Key Products and Services
BlockFi Interest Account (BIA)
The BlockFi Interest Account was once the platform’s flagship product, allowing users to earn compound interest on major cryptocurrencies like BTC, ETH, and stablecoins such as USDC, GUSD, and USDT.
As of recent updates:
- 6% APY on Bitcoin
- 8.6% APY on GUSD and USDT
- 4.5% APY on Ethereum
Interest is accrued daily and paid monthly, with no minimum balance or hidden fees. However, U.S. residents can no longer open new BIAs due to an SEC settlement in 2022.
BlockFi is working on launching BlockFi Yield, a compliant version of the BIA pending SEC approval. Until then, non-U.S. clients can access BIA through BlockFi International (Bermuda).
Crypto-Backed Loans
BlockFi allows users to borrow USD by using their crypto assets as collateral—without credit checks or income verification.
Key features:
- Loan-to-value (LTV) ratio up to 50%
- Interest rates from 4.5% to 9.75%, depending on LTV
- No origination fees for most loans (2% for margin loans)
- Funds deposited directly into your bank account
This service is ideal for investors who want liquidity without selling their long-term crypto holdings.
Cryptocurrency Trading
BlockFi supports trading in major digital assets including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- PAX Gold (PAXG)
- USD Coin (USDC), Gemini Dollar (GUSD), and more
The platform acts as a market maker, so there are no trading fees. Instead, it earns revenue through small bid-ask spreads (typically around 1%).
Traders benefit from fast execution, tax-loss harvesting tools, and seamless integration with other BlockFi services.
BlockFi Rewards Credit Card
The BlockFi Rewards Visa Card offers crypto cashback:
- Up to 3.5% back in crypto for the first 90 days
- Drops to 1.5% afterward
- Increases to 2% for annual spending over $50,000
To qualify, users must:
- Open a BlockFi Interest Account
- Fund their account
- Join the waitlist
This card is a compelling option for frequent spenders looking to earn passive crypto rewards.
BlockFi Wallet
The BlockFi Wallet is a non-interest-bearing storage solution that lets users buy, sell, and hold cryptocurrencies securely. While it doesn’t pay interest, it integrates directly with lending and trading features.
Note: U.S. users face withdrawal restrictions on certain coins like Dogecoin (DOGE), Bitcoin Cash (BCH), and Algorand (ALGO).
BlockFi Personalized Yield
For clients with $3 million or more in crypto assets, BlockFi offers Personalized Yield—a premium service featuring:
- Dedicated relationship managers
- Custom interest rates
- Discounted trading fees
- Opportunities to lend assets for additional returns
This tier reflects BlockFi’s focus on high-net-worth investors seeking institutional-grade services.
BlockFi Trusts
Accredited and institutional investors can access three managed trusts:
- Bitcoin Trust
- Ethereum Trust
- Litecoin Trust
Minimum investment: $50,000
Management fee: 1.75% annually
These trusts offer passive management and secure custody but come with valuation risks relative to underlying assets.
Security Measures
BlockFi prioritizes security through multiple layers of protection:
- Assets are custodied by trusted third parties like Gemini, Coinbase, and BitGo
- All reserves are held with regulated U.S.-based custodians
- Users can enable address allowlisting to restrict withdrawals
- Strict KYC and AML compliance protocols
While funds are not FDIC or SPIC insured, the platform’s regulatory alignment and institutional backing from firms like Valar Ventures and Coinbase Ventures enhance trust.
Fees Overview
| Service | Fee Structure |
|---|---|
| Trading | No fees; revenue from ~1% spread |
| Withdrawals | One free withdrawal per month for BTC, LTC, and select stablecoins; additional withdrawals incur network-based fees |
| Loans | 2% origination fee; interest rates from 4.5% to 9.75% based on LTV |
| Credit Card | No annual fee; crypto rewards based on spending tiers |
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Available Cryptocurrencies
BlockFi supports a curated list of assets ideal for mainstream investors:
- BTC, ETH, LTC
- Stablecoins: USDC, USDT, GUSD, DAI, BUSD
- Altcoins: LINK, BAT, UNI, ALGO, PAXG
While not as extensive as larger exchanges like Binance or Coinbase, BlockFi’s selection covers most core investment needs.
How to Create a BlockFi Account
- Sign Up: Visit the official site and register with your name, email, and password.
- Verify Identity: Complete KYC by uploading a government ID (passport or driver’s license).
- Deposit Funds: Add fiat via bank transfer or deposit crypto directly.
- Start Using Services: Begin trading, lending, or applying for the credit card.
The process is user-friendly and typically completed within a few business days.
Customer Support
BlockFi offers 24/7 customer support via:
- Phone
- Help center with categorized FAQs
Its support team is responsive and well-regarded across review platforms. Educational content is also available on BlockFi Live, its YouTube channel featuring tutorials and expert interviews.
Regulatory Update: SEC Settlement
In 2022, BlockFi reached a settlement with the SEC over unregistered securities offerings related to its Interest Account. Key outcomes:
- $100 million in penalties ($50M to SEC, $50M to states)
- Halt of BIA offerings to U.S. clients
- Commitment to register future products under securities law
This action underscores the importance of regulatory compliance in the evolving crypto landscape.
Frequently Asked Questions (FAQ)
Q: Does BlockFi have its own wallet?
A: Yes. The BlockFi Wallet allows secure storage, trading, and transfers—but does not earn interest.
Q: Are there trading fees on BlockFi?
A: No direct fees. BlockFi profits from bid-ask spreads, typically around 1%.
Q: Can I open a business account on BlockFi?
A: Not currently. Business accounts are temporarily unavailable but may return in the future.
Q: Is my money safe on BlockFi?
A: Yes. Assets are held with regulated custodians like Gemini. However, funds are not FDIC-insured.
Q: How long do withdrawals take?
A: 1–5 business days, depending on the cryptocurrency and network congestion.
Q: Can I earn interest on my crypto?
A: Yes—but only if you’re a non-U.S. resident using the BlockFi Interest Account.
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Final Verdict
BlockFi stands out as a secure, user-focused platform offering innovative financial tools for crypto investors. Despite regulatory challenges that limited its U.S. interest account offerings, it continues to serve global clients with competitive loans, trading, and rewards programs.
Its commitment to compliance, strong security infrastructure, and premium services for high-net-worth individuals make it a trustworthy choice in 2025.
While not ideal for traders seeking extensive altcoin support or U.S.-based savers wanting yield, BlockFi remains a solid option for those prioritizing safety, simplicity, and integrated financial services.
Whether you're borrowing against your Bitcoin or earning yield abroad, BlockFi delivers where it matters most—security, service, and innovation.
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