FinTech News
Bitcoin IRA Announces Interest-Earning Crypto Accounts
The idea of treating cryptocurrencies as an investment is certainly not new. Unfortunately, due to the volatile nature of most digital currencies, it can be difficult for investors to play the long game. Now Bitcoin IRA is looking to incentivize long-term crypto holders by allowing them to earn interest on their crypto and cash through lending their assets.
This new program will find Bitcoin IRA partnering with the digital asset trading and lending platform Genesis. That company has originated more than $2.3 billion in loans, including $746 million in cryptocurrencies and cash loans just during the second quarter of this year. As for Bitcoin IRA themselves, as their name implies, they allow individuals to set-up self-directed retirement accounts that can be used to purchase and trade digital assets. Since debuting in 2016, the company has grown to 4,000 clients who have invested a total of $350 million on the platform.
Bitcoin IRA’s interest-earning accounts will begin their roll out next month. However they do warn that only a small number of users will be invited to participate at first and these spots will be filled on a “first come, first served” basis. At launch four tokens will be supported: Litecoin, Etherum, Zcash, and of course Bitcoin. The firm notes that the account’s annual interest rates will vary based on lending coin and term length. While full details will be announced soon, Bitcoin IRA’s site reveals that interest payments will be made monthly and that users can get started with as little as $3,000. Finally, although there are no upfront costs, a “small fee premium” will be deducted from interest earned.
In a press release announcing these new accounts, Bitcoin IRA co-founder and COO Chris Kline said, “Interest-earning accounts through our crypto and cash lending program are an exciting revolution in decentralized finance. Borrowing and lending using cryptocurrencies and cash are providing new and safe opportunities for our clients to maximize the growth of their retirement accounts.” Kline went on to add,” Interest earned by a client can offset trading fees or custodial holding fees, essentially creating a free account making these fees a thing of the past.”
Granted, cryptocurrency retirement accounts might not be right for everyone. Similarly those with such accounts might not be interested in lending out their assets. That said what Bitcoin IRA and Genesis are debuting is certainly a compelling concept and one that’s worth keeping an eye on.
