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Behind The Scoop: BlockFi and Lolli exemplify the value of bitcoin-focused fintech companies

by Ryan Todd

July 25, 2019, 8:20PM EDT  ·  14 min read

Quick Take

  • BlockFi and Lolli are looking to on-board a million-plus new users into bitcoin that may be on the margin of owning the asset
  • The two companies highlight how fintech companies can leverage bitcoin to efficiently scale and conduct regulatory arbitrage globally
  • BlockFi is gearing up to expand its total addressable market by going after customers that currently don’t already own crypto with a plan to offer a bitcoin-reward credit card by this time next year
  • ~10% of interest account users have been cross-sold into BlockFi’s lending product
  • ~40% of Lolli’s customers are new to bitcoin, up from 10% since when they first started
  • Lolli has had several hedge-funds reach out looking to pool liquidity around their bitcoin and offer 8% for the deposits; both BlockFi and Lolli could drive more robust bitcoin lending markets
  • A more robust lending and deposit market improves bitcoin price discovery (reducing volatility overtime), lower funding costs for both consumers and institutions, and improves market liquidity

by Ryan Todd

July 25, 2019, 8:20PM EDT  ·  14 min read

Behind The Scoop offers Genesis subscribers a summary of what we learned from our podcast guests, and profiles research to further the discussion beyond the latest episode.

This piece pulls information form The Scoop episodes with Alex Adelman, CEO and Co-Founder of Lolli, and Zac Prince, CEO of BlockFi.