Part 9/18:
The company's vision is to eventually challenge traditional financial institutions—like JPMorgan and PayPal—by providing faster, cheaper, and more accessible financial services rooted in cryptocurrency infrastructure.
The Business Mechanics: How BlockFi Manages Risks and Counterparties
The Role of Collateral and Credit Risk
Zach clarifies that BlockFi’s loans and lending activities operate along a "spectrum" of collateralization. On one end, they take liquid collateral—fiat or crypto assets—and on the other, they offer unsecured loans guaranteed by corporate entities. Most of BlockFi's portfolio (about 70-80%) is collateralized, securing against potential defaults.