BlockFi has introduced a new digital assets interest product for accredited investors, after previously agreeing to shut down a yield-paying crypto product that the SEC said was illegal.
Crypto lending has come under scrutiny by the SEC and state regulators, many of whom have said that crypto lending products are securities, some with substantial risk, and should be regulated as such.
In February BlockFi agreed to pay a $100 million penalty to the SEC for offering and selling its BlockFi Interest Accounts product.
The new product is initially open to U.S. accredited investors only. It will be open to some customers by the end of the year and all U.S. customers at the start of 2023.
The product will have "competitive interest rates" on 15 digital assets including bitcoin and ether and no minimum investment.
Earlier this year, BlockFi faced a rapid downturn in the crypto markets and laid off 20% of its staff. It also entered into an agreement with FTX in which the crypto exchange provided BlockFi with a $400 million credit line and in return gained an option to buy BlockFi.
The purchase price was reportedly dependent on certain performance milestones, including the SEC approval of this new interest product, which would boost the purchase price by $25 million.