- River has announced a new feature dubbed, ‘Bitcoin Interest on Cash’
- The product allows customers to get BTC for interest earned on their cash deposits.
- The US-based platform will offer a 3.8% interest on the cash deposits.
- User funds are FDIC-insured via its partnership with Lead Bank, the exchange said in a press release.
River, a US-based Bitcoin exchange provider, has introduced a new feature that lets users earn interest in Bitcoin on their cash deposits.
The new product is ‘Bitcoin Interest on Cash’, River revealed in an announcement on Tuesday. According to the company, the feature will allow customers to earn a 3.8% interest on their cash deposits.
Introducing 3.8% Interest on Cash—Paid in Bitcoin!
Stop letting your cash lose value to inflation, even in “high-yield” accounts.
Unlock the predictability of dollars with the opportunity to build real wealth in Bitcoin. Only on River. pic.twitter.com/EDr7jpMAPC
— River (@River) October 22, 2024
River partnership with Lead Bank
River is not a bank. Howver, it has partnered with Federal Deposit Insurance Corporation (FDIC)-registered Lead Bank to insure customer’s deposits up to $250,000. It means users’ money in Lead Bank will benefit from FDIC insurance, with customers protected against a failure for the bank.
River says users can withdraw their funds at any time.
“In a world where traditional savings accounts are unable to fully protect your wealth, Bitcoin Interest on Cash offers a new path forward. By combining the predictability of cash with the opportunity of bitcoin, we’re empowering you to take control of your financial future,” Alex Leishman, chief executive officer at River, noted.
Swan CEO Cory Klippsten commented on River’s new product:
I like @river‘s new product, paying 3.8% interest for a USD account in Bitcoin.
It’s a simple automatic conversion of USD->BTC for the interest you’ve earned.
I get 4.52% interest on cash, so I’d consider the foregone 0.72% the transaction fee. Not earth shattering, but cool!
— Cory Klippsten 🦢 Swan.com (@coryklippsten) October 22, 2024
According to the exchange, the 3.8% interest could be huge as Bitcoin price looks to rally. The same earnings over the past two years, for instance, could have returned 16 times the average savings account.
Bitcoin traded around $67,500 on Tuesday, October 22, 2024.
The current BTC price is up over 125% in the past year. Notably, the gains were much higher when BTC raced to its all-time high above $73,000 in March.