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Is FTX looking to acquire stakes in BlockFi?

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One of the leading crypto exchange firms, FTX, has been among rare crypto companies that took its way upstream despite the market downturn

As per several reports, Bahamian cryptocurrency exchange firm FTX is looking forward to acquiring stakes in one of the prominent crypto lending platforms, BlockFi. WSJ reported the ongoing discussion between both FTX and BlockFi however, no equity agreement has seen to be achieved yet. It was earlier this week itself when FTX agreed to avail a line of credit of worth $250 million to BlockFi. 

Chief Executive Officer of BlockFi, Zac Prince, said that the money received from FTX is intended to get placed in a lower class to all the client’s balances on the basis of contracts across all types of accounts. Such accounts include the BlockFi interest account, BlockFi personal yield and loan collateral, etc., for which the funds will be used. 

Further BlockFi CEO added that access to the support in the form of additional capital to the balance sheet of the firm and the strength of the platform. He said that the agreement also keeps unlocking the collaborations and innovations in upcoming times between both BlockFi and FTX as these firms are working to bring prosperity across the world through its services related to crypto finances. This step would be significant with respect to their mutual commitment regarding the strength and crypto markets’ accessibility. 

CEO of FTX, Sam Bankman-Fried said that this support of the firm is designed in a way that would enable BlockFi in order to navigate the market. He further added that BlockFi has great leadership and careful risk management that made crypto lending platform successful in terms of eliminating risky counterparts as preventive measures. 

FTX CEO put his belief in BlockFi stating that customer assets on the crypto lending platform get managed appropriately that have no debt or such type of risk like Three Arrows Capital and Celsius like firms. He said that while moving forward, they are quite excited while partnering with the crypto lending platforms in order to offer such products that are industry-leading while following their duties to protect its customers and their digital assets ecosystem. 

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