Crypto Lender BlockFi Stops to Accept GBTC as Collateral

Crypto lending platform BlockFi annouced that it has stopped Grayscale Bitcoin Trust ( GBTC) as collateral, as reported.

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BlockFi stated: "We are not saying that we won't support GBTC as collateral moving forward. Like any collateral, we constantly evaluate appropriate collateral haircut ratios and aim to accept as many types of collateral that our clients hold as possible." Grayscale Investments declined to comment.

Recently, the impact of the crypto hedge fund Three Arrows Capital has triggered violent fluctuations in the crypto industry, and the company has filed for bankruptcy liquidation earlier this month​. Grayscale Investments once owned more than 5% of the bankrupt company and lost about $80 million.

In June, in response to the "crypto winter", BlockFi had laid off about 20%​ of its staff to "ensure Blockfi is here for the long haul". The company's announcement to stop accepting GBTC this time also aims to reduce the company's operational risks.