BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers. To ensure loan performance, BlockFi lends crypto on over-collateralized terms (similar to the structure of our crypto-backed loans). Furthermore, BlockFi’s automated risk management system monitors positions 24/7, providing the same trusted risk management system used with BlockFi’s crypto-backed loans. BlockFi has the ability to terminate a borrow in a timely fashion and also manages reserve balances to facilitate clients withdrawals from Interest Accounts. Reserves are stored securely with our primary custodian Gemini, a New York trust company regulated by NYDFS. Learn more about how BlockFi stores clients assets.