While it would be nice to get a solid confirmation from an existing intellihub account, the downvotes from @steemcleaners have been removed. Block quotes can be done using HTML like this:
<blockquote>Quoted text.</blockquote>
or markdown like this:
>Quoted text. [below is a single > to continue the block quote across linebreaks]
>
>Next quoted paragraph (if there is one)
Resulting in:
Quoted text.