U.S. Bitcoin exchange River has unveiled its latest product, “Bitcoin Interest on Cash,” offering users a unique opportunity to earn bitcoin from their cash deposits. This innovative service allows customers to earn a 3.8% interest rate, which can be paid in bitcoin, while maintaining the security of FDIC-insured cash deposits.
River Unveils New Cash Earning BTC Option
According to a press release, River’s new product enables customers to earn yield on their cash while benefiting from the growing value of bitcoin. Unlike previous yield products that put Bitcoin at risk, River’s offering generates interest on cash deposits, keeping the deposited funds fully insured by the FDIC up to $250,000.
River ensures that customer BTC holdings are also held in full-reserve custody, providing an additional layer of security.
The interest earned through this product is comparable to many high-yield savings accounts, but with a key difference: the payout can be made in BTC. This feature gives users a way to diversify their savings and potentially benefit from BTC’s long-term growth.
No Hidden Fees or Minimums
River’s “Bitcoin Interest on Cash” product does not impose any hidden fees or minimum deposit requirements. Concurrently, customers have the flexibility to withdraw their cash whenever needed, making the service accessible and easy to use.
According to Alex Leishman, CEO of River, this product aims to provide customers with a way to grow their savings faster than traditional savings accounts while avoiding the erosion of value caused by inflation.
Leishman stated,
“By combining the predictability of cash with the opportunity of BTC, we’re empowering users to take control of their financial future.”
Catering to Both Bitcoin Enthusiasts and Newcomers
The product is designed to appeal to both seasoned Bitcoin enthusiasts and those new to cryptocurrency. Many users may want to earn Bitcoin without directly buying it, especially considering the volatility often associated with cryptocurrencies.
By offering a way to earn Bitcoin through insured cash deposits, the exchange is hoping to attract a broader range of customers who want the stability of cash with the potential upside of BTC.
This new option also presents a way for users to automate the process of converting their cash interest into bitcoin. River aims to simplify the process of acquiring BTC without needing customers to actively purchase it.
Differentiating from Past Crypto Yield Products
Bitcoin Exchange River emphasizes that its product is fundamentally different from other cryptocurrency yield-bearing options that have faced challenges in the past.
The company does not generate yield on customer BTC holdings, ensuring that their bitcoin remains secure. Instead, the yield is earned solely on cash deposits, making this a safer alternative for those cautious about the risks associated with cryptocurrency yield products.
Partnering with Lead Bank, an FDIC member, River has assured its customers that their cash deposits remain protected, while offering them the flexibility of earning interest in USD or BTC.
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