BlockFi wants to convert some of its crypto assets to stablecoins

BlockFi seeks to convert ALGO, BCH and DOGE holdings to stablecoins

article-image

Formatoriginal/Shutterstock modified by Blockworks

share

BlockFi submitted a request to swap its trade-only assets to the Gemini Dollar stablecoin.

The move, the bankrupt crypto lender said, would allow the assets to be withdrawn. 

Currently, the assets aren’t available for withdrawal due to “practical reasons associated with the attributes of the digital coins.” The assets include Algorand (ALGO), Bitcoin Cash (BCH) and Dogecoin (DOGE). While the filing specifically names the Gemini Dollar stablecoin, it does note that the assets could be transferred to another stablecoin of the debtors’ choosing. 

These cryptos comprise a small amount of BlockFi’s overall wallet assets, roughly half a percent.

Custodial partner BitGo is unable to handle the process that would be necessary to “transmit blockchain transactions” for the assets as they are.

BlockFi’s committee of unsecured creditors is in support of the request. 

The move comes after BlockFi initiated certain withdrawals earlier this month, after building a new product functionality in order to process the withdrawals on the platform. 

Prior to the opening of certain withdrawals, the SEC said that it would “forego” the $30 million BlockFi penalty until investors are repaid. The SEC charged BlockFi a $50 million penalty in February of last year, penalizing the lender for allegedly selling BlockFi Interest Accounts (BIAs) to the public.

The crypto lender declared bankruptcy in November of last year following the collapse of FTX, it instituted a “Platform Pause” back on Nov. 10, 2022, freezing assets on its site.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Monad SR Report Graphic.png

Research

Monad is a new Layer 1 blockchain designed as a high performance, EVM-compatible platform.

article-image

Engineers from MetaMask, Coinbase, Google, and the Ethereum Foundation make the case for onchain AI agents via ERC-8004

article-image

Legacy payments firm partners with Anchorage Digital to issue a dollar-pegged token under new US stablecoin law

by Blockworks /
article-image

As Solana ETFs launch but network REV trends lower, Jito sits at the intersection of new capital inflows and microstructure improvements

article-image

The Truth Social parent will integrate Crypto.com Derivatives North America, allowing users to trade prediction contracts under federal oversight

by Blockworks /
article-image

Partnership surpasses $2 billion in staked assets and adds support for new Proof-of-Stake networks

by Blockworks /
article-image

The tokenization leader will merge with Cantor Equity Partners II, becoming the first public firm focused on securities tokenization

by Blockworks /