BlockFi Rate Cut on Bitcoin Deposits Leaves Rivals Scratching Heads – CoinDesk – CoinDesk

BlockFi Rate Cut on Bitcoin Deposits Leaves Rivals Scratching Heads – CoinDesk – CoinDesk

Crypto lending platform BlockFi is cutting interest rates on a number of crypto asset deposits, just about three months after the company lowered rates in March.

BlockFi says its decision was made based on the changing market dynamics and borrowing demand from institutional investors.

But unlike the last time, other leading top crypto lending desks such as Genesis and Canada-based Ledn are not following BlockFi’s lead move, at least for bitcoin deposits. Some of the executives at the firms are seeing increased borrowing demand compared with the previous quarter, so they need to attract the deposits to lend them out.

An outlier move

BlockFi announced June 25 the lower interest rates on deposits of crypto including bitcoin, ether, chainlink, litecoin and a few others will go into effect July 1. The annual percentage yield (APY) for bitcoin deposits larger than 20 BTC, for example, will go down to 0.25% from 0.5%.