Recruit Invests in BlockFi, Which Provides a Lending Service Using Virtual Currency as Security for Legal Tender

Dec. 11, 2018
Recruit Co., Ltd.
Business / Management

Recruit Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Yoshihiro Kitamura; referenced below as "Recruit") , an intermediate holding company of Recruit Holdings Co., Ltd., has invested in BlockFi Inc. (Headquarters: New York, USA; CEO: Zachary Prince, hereinafter referred to as "BlockFi"), which provides a lending service using virtual currency as security for legal tender, through its investment subsidiary RSP Fund No. 6, LLC.

1. Background and Objective

Following the sudden expansion of the virtual currency market, there has been a recent increase in virtual currency owners. However, there are many instances when legal tender is needed in the real economy, and although the demand for converting virtual currency into legal tender has been increasing similarly, there are several issues facing this situation, such as the amount of time needed for an exchange, the high taxes being levied, and the impact of fluctuation in prices. Through "BlockFi," the service of lending legal tender on the security of virtual currency, BlockFi minimizes exchange costs while instantly fulfilling needs for cash with low interest rates.

Through this investment, Recruit will support quality improvements and expanded usage for this service. BlockFi plans to enhance its product development and sales activities with these funds raised.

2. Overview of BlockFi Inc.

BlockFi Inc.

BlockFi simplifies the screening process, which includes identity verification, by using virtual currency as security and automates the screening flow, which utilizes its internal and external databases. As a result, the lead time between the application and the provision of the loan is shortened, and legal tender can be loaned with low interest rates.

Not only is this service being used by individual virtual currency owners, it is also being utilized by virtual currency remittance firms, ICO companies, virtual currency traders, mining firms, and many other clients at the moment.

(1) Company Name BlockFi Inc.
(2) CEO Zachary Prince
(3) Address 86 Chambers Street Suite 205, New York, NY 10007
(4) Established August 2017
(5) Main Business Provision of a lending service using virtual currency as security for legal tender
(6) Website

3. Overview of RSP Fund No. 6, LLC

The fund aims to discover new technologies and new business models, and to acquire business opportunities which are relevant to new business development for the Recruit Group.

(1) Company Name RSP Fund No. 6 LLC
(2) Representative Akihiko Okamoto
(3) Address 8-4-17 Ginza, Chuo-ku, Tokyo
(4) Established November 12, 2014
(5) Main Business Investment development and venture capital