BlockFi, a cryptoasset to U.S.dollar lender, raised $52.5 million to expand operations. Digital currency and blockchain technology investment firm Galaxy Digital Ventures led the deal. BlockFi’s existing investors, including ConsenSys Ventures and PJC, also participated in the funding round.

As part of the investment, Chris Ferraro, head of Principal Investments at Galaxy Digital, joined the BlockFi board of directors. Rene van Kesteren, a former managing director at Bank of America Merrill Lynch, joined BlockFi as chief risk officer.

“We’re excited to partner with BlockFi and jointly lead the way for financial institutions to participate in crypto investing strategies,” said Mike Novogratz, founder of Galaxy Digital Ventures. “A robust lending market is the keystone for financial systems and BlockFi’s institutional approach and deep lending expertise were key drivers in our decision to partner with them.”

“Galaxy’s investment and decision to make us their exclusive consumer lending partner is a strategic step towards BlockFi delivering large scale credit across the crypto ecosystem,” said BlockFi CEO and co-founder Zac Prince. “The support we’ve seen from existing clients and investors highlights the strong demand for leveraging Bitcoin and Ether for low-cost USD loans. We look forward to expanding our services to support more cryptocurrencies and geographic markets in the near future.”

This is the industry’s first institutional investment in cryptoasset-backed loans.

Based in New York with operations in 40 U.S. states, BlockFi operates an institutional quality debt market for cryptoassets. The company currently offers individuals and corporations the ability to leverage their Bitcoin and Ether to obtain U.S. dollars loans, bringing additional liquidity to the blockchain sector.