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Crypto lending platform BlockFi has signed a term sheet with major crypto exchange FTX to secure a $250 million revolving credit facility, BlockFi CEO Zac Prince announced June 21.

According to Prince, this deal will offer BlockFi access to additional capital, which the company will use to strengthen its balance sheet.

Credit line proceeds will be contractually subordinated to all customer balances in all BlockFi accounts. These include BlockFi Interest Account (BIA), BlockFi Personalized Yield (BPI), and BlockFi Loan Guarantee. BlockFi intends to use the profits to bolster its operations as the bear market continues to devastate the crypto space.

BlockFi seeks to keep user funds safe

Prince noted that this deal underscores BlockFi’s commitment to serving its customers and ensuring the safety of their funds.

Last week, Celsius Network suspended withdrawals, trades, and transfers on its platform due to liquidity issues. In a domino effect, crypto hedge fund Three Arrows Capital (3AC) faced liquidation after failing to meet lenders’ margin calls. According to a report by the Financial Times, BlockFi was among the lenders that liquidated 3AC.

While BlockFi did not confirm its role in the 3AC liquidation, Prince said the company liquidated a large counterparty after failing to honor margin calls. He did not reveal the name of said counterpart. However, Prince claimed that BlockFi was one of the first lenders to liquidate the third party, and that acting quickly helped keep customer funds safe.

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This post BlockFi secures a $250 million credit line from FTX to support the platform

was published first on https://cryptoslate.com/blockfi-gets-250-million-credit-facility-from-ftx-to-support-platform/

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