A company aiming to deliver traditional financial services to digital asset investors has lowered the minimum required Bitcoin account balance to earn interest, an effort to make the service more accessible.
Those planning to utilize BlockFi’s interest accounts must know that such custodian services involve a relatively higher risk to Bitcoin investors compared to if they would take responsibility for their private keys. High profile exchange attacks show the danger to those deciding to keep their coins with giant centralized services like BlockFi.
Less than a month after launching its crypto interest accounts, BlockFi revised its terms of service to lower the minimum required account balance to receive payments. Before, users have to hold a whole Bitcoin, but now it has been reduced to 0.5 BTC.
The change was announced in BlockFi’s monthly update. The post states that the move was influenced by public pressure:
“After launching BIA, a lot of users reached out to our team asking that we drop our minimum eligible balance to earn interest. We’re excited to let our community know that BTC balances of 0.5 BTC and up will now begin earning interest on their deposits.”
The adjustment will take effect on May 1 and will be applied retroactively. Therefore, those with balances of at least 0.5 BTC with BlockFi since April 1 will earn interest.
The post also mentioned a change to BlockFi’s terms on its Ether interest accounts. The company previously offered to pay interest on Ether accounts containing over 25 ETH. But due to market conditions, BlockFi was forced to raise the minimum threshold to 250 ETH.
Ultimately, the company revealed that it will open its services to Indian cryptocurrency investors, making BlockFi available to 65 countries.
While many Bitcoin investors will likely take advantage of BlockFi’s interest account, those planning to must do so with caution. Hackers have been targeting centralized firms that offer services requiring crypto deposits.
BlockFi’s update also indicates the overall amount held:
“As of this month, over $53 million in client crypto is stored with BlockFi and is earning interest every day.”