The bank hints at the motivation for the new product, stating that in “uncertain times” it is necessary for investors to rebalance their investment portfolios,
In uncertain times, it’s more important than ever to start building or rebalance your investment portfolio with diversified income streams. As financial institutions start to brazenly climb back from the lows, it’s no better time to invest your bitcoin with competitive rates - rates where you can earn up to 4% on your crypto holdings.
The Bitcoin Interest Account, in a bid to be accessible, takes only a few moments to set up. Users are asked for identity verification, through a video call, following a set of onboarding steps. They can then begin investing and trading on a single app.
Bitwala CEO Ben Jones pointed to the growing trust that investors have in Bitcoin,
At this time, more and more people trust in Bitcoin. Bitwala is the everyday bridge to it. We are now partnering with Celsius Network, the world’s leading provider of crypto loans, so that our customers can leverage Bitcoin holdings wherever they are.
The bank has imposed a minimum purchase of 10 EUR of BTC, a small enough sum for almost everyone to work with. Funds can be added and withdrawn at any time, and payouts are made every Monday. Users can also instantly convert the funds into Euros, which is another feature that will be welcome.
Bitwala has teamed up with blockchain network Celsius Network for this account. The latter deploys the assets onto cryptocurrency and lending markets, which is how the interest is earned.
While some decentralized finance (DeFi) platforms offer higher interest rates, Bitwala’s focus on following regulation gives it a sense of legitimacy and safety, which may attract previously cautious investors.
Bitwala has received a license from German Bank SolarisBank AG, serving 32 European countries. It has raised over $21 million in funding from the likes of NKB Ventures, Sony Financial Ventures, G1 Ventures and Global Brain Corporation.