On October 22nd, US-based Bitcoin financial services company River launched a new product called Bitcoin Interest on Cash that allows users to earn interest on cash deposits and receive payments in Bitcoin. announced the release of “. This new service is designed to help individuals grow their savings in a volatile economic environment, while ensuring safety through FDIC insurance on cash deposits.
The main feature of this product is that users can earn 3.8% interest on their cash deposits and can pay in USD or Bitcoin. This interest rate is subject to change, but as of October 22, 2024, an interest rate of 3.8% provides an opportunity for investors seeking higher returns than are typically earned on traditional savings accounts . River emphasizes that FDIC insurance protects cash deposits of up to $250,000, and all Bitcoins are kept in full custody, providing additional security.
River claims the product offers a solution to the declining value of traditional savings accounts, which have difficulty keeping up with inflation. The company says Bitcoin Interest on Cash allows users to benefit from the stability of cash while leveraging Bitcoin’s higher earning potential. Over the past two years, the product may have generated 16 times more returns than the average savings account, River noted.
According to River CEO Alex Leishman, the product offers a new way for individuals to protect their wealth in the current financial climate. He believes that combining the reliability of cash with the opportunities of Bitcoin is a promising avenue for investors looking to diversify their savings strategies.
River also emphasized that unlike past crypto products that sought to generate yield on Bitcoin itself, this product focuses on earning interest on cash deposits. The cash is held at Lead Bank, member FDIC, which manages the funds and provides insurance. River further reassures users that their Bitcoins are fully reserved and will never be at risk.
River is a Bitcoin-only startup that provides services such as investment management and secure storage. The company is fully regulated in the US and adheres to strict compliance measures such as proof of reserves, which allows customers to independently verify that their Bitcoins are held in full reserves.
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