BlockFi to Relaunch Yield Bearing Product in the US After SEC Settlement
American crypto lending firm, BlockFi has announced the relaunch of its yield-bearing product in the US, a product that will only be accessible to accredited investors.
Dubbed BlockFi Yield, the lending firm said it is offering this service based on an exemption from the registration requirements of the Securities Act of 1933, as amended.
The company said the product will not be registered with the United States Securities and Exchange Commission (SEC) but that this will not mean the product will be available to just anyone. The company said the product will be available in Beta by the end of this year to a few clients but that it will launch it for all eligible clients by the start of 2023.
"As we continue to diligently work towards registration with the SEC for a public offering for BlockFi Yield, we are delighted to share that U.S. clients verified as accredited investors will soon be able to earn interest on digital assets at BlockFi," said Flori Marquez, Founder and COO of BlockFi. "A foundational pillar of BlockFi is to be client-centric and serve as a stabilizing industry force. We are proud to be one of the battle-tested organizations that are still serving their clients, listening to their needs, and evolving as we continue to support their digital asset journey."
Rekindling the Yield Product
The relaunch of the BlockFi Yield product is a testament to the fact that the lending outfit has learned from its past mistakes. The earlier version of the product was targeted at a wider net of clients, spurring a series of investigations from states as to whether the offering constituted an offering or not.
BlockFi was fined $100 million by the SEC back in February, drawing on a glaring loophole in its offering. With the repackaged launch of the product, the firm said it will make the verification of accredited investors a compulsory requirement to access the new product.
BlockFi was among the distressed firm by reason of the crypto winter, however, the purchase agreement it has with FTX Derivatives Exchange has helped it stay in business, unlike its competitor Celsius Network.
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