The cryptocurrency wallet provider Blockchain.com announced an increase in annual interest rates on deposits in Bitcoin and stablecoins USDT and Paxos.
For BTC, the rate has been raised from 4.5% to 6% with a minimum deposit of $300; for USDT and PAX – from 7% to 12% with a minimum deposit of $100. For the second-largest cryptocurrency by market cap, Ethereum, the rate remained the same – 5% with a minimum deposit of $100.
Shocked by our current rates? You won’t believe what we’re offering now.
Earn up to 12% annual interest on your #crypto HODLings. https://t.co/kNcSHam1h9 pic.twitter.com/eZiY3K3xv2
— Blockchain.com (@blockchain) August 17, 2020
In a statement to The Block, Blockchain.com’s CEO Peter Smith said the company could afford such rate increases thanks to revenues generated from its institutionally oriented lending service.
He added that the company would stay profitable even at such rates for retail customers, as it could charge higher fees to companies seeking crypto loans. Documents provided to the publication corroborated his words.
Back in May 2020, Blockchain.com’s cryptocurrency interest accounts were launched.
Similar services are offered by other firms. The BlockFi lending platform introduced crypto deposit accounts with annual yields of up to 6.2% in March 2019. This year it also raised deposit rates.
The German online bank Bitwala in May added support for Bitcoin deposits, with an annual interest rate of up to 4.3%.
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