So if I understand their website, Blockfi has two programs. One allows you to put up crypto collateral which they will then allow you to borrower 50% of the current valuation. Something that several exchanges have been doing for awhile now.

The second is an interest bearing account where you deposit your crypto and Blockfi then loans this money out. But lets keep in mind that this is not a bank account and does not sound like it comes with guarantees.

While providing a source of income for hodlers, this seems to defeat the overall intention of controlling your own wealth. I guess time will tell if this is really a viable program.

Thank you for bringing this to our attention @whatageek.