- River has announced a new feature called “Bitcoin Interest on Cash.”
- The product allows customers to earn BTC as interest on their cash deposits.
- The U.S.-based platform offers 3.8 percent interest on cash balances.
- The exchange said in a press release that user funds are insured through a partnership with Lead Bank and covered by the FDIC.
River, a U.S.-based bitcoin exchange, has launched a new feature that lets users earn interest paid in Bitcoin on their cash balances. The product, called “Bitcoin Interest on Cash,” was announced by River on Tuesday.
According to the company, customers using this feature will earn 3.8% interest on their cash deposits, paid in BTC.
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 and Lead Bank Partnership
River itself is not a bank. Instead, it has partnered with Lead Bank, which is registered with the Federal Deposit Insurance Corporation (FDIC), to provide insurance on customer deposits up to $250,000. This arrangement means customer funds held with Lead Bank are eligible for FDIC coverage, protecting users in the event of a bank insolvency. River says customers can withdraw their funds at any time.
“In a world where traditional savings accounts may not fully preserve your wealth, Bitcoin Interest on Cash offers a new path forward. By combining the predictability of dollars with the upside of Bitcoin, we aim to give people more control over their financial future,” said Alex Leishman, CEO of River.
Swan CEO Cory Klippsten also 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
River notes that the 3.8% interest rate could lead to significant gains if Bitcoin’s price rises. For example, the company says comparable returns over the past two years would have outperformed the average savings account many times over. On Tuesday, October 22, 2024, Bitcoin traded at approximately $67,500.
Over the past year, the BTC price has risen by more than 125%. Gains were particularly pronounced when Bitcoin reached an all-time high above $73,000 in March.