On October 22, River, a Bitcoin financial services firm based in the U.S., unveiled its latest product, Bitcoin Interest on Cash. This innovative offering enables users to earn interest on their cash deposits and receive payouts in Bitcoin. Designed to help individuals enhance their savings amid economic volatility, this product also ensures security through FDIC insurance on cash deposits.
The standout feature of this offering is the ability for users to earn an interest rate of 3.8% on their cash deposits, available in either USD or Bitcoin. While this interest rate is subject to change, the current 3.8% rate, effective as of October 22, 2024, presents an attractive option for investors seeking better returns than those typically provided by conventional savings accounts. River underscores that cash deposits are insured up to $250,000 by the FDIC, while Bitcoin is stored with full-reserve custody, providing additional security.
River asserts that this product addresses the declining value of traditional savings accounts, which often fail to keep up with inflation. The company claims that Bitcoin Interest on Cash allows users to leverage the stability of cash while accessing Bitcoin’s potential for higher returns. Over the past two years, River notes that this product could have delivered returns 16 times superior to the average savings account.
As per Alex Leishman, CEO of River, this product introduces a novel way for individuals to safeguard their wealth in the current financial landscape. He posits that the combination of cash reliability and Bitcoin opportunities presents an attractive option for investors seeking to diversify their savings approaches.
River further emphasizes that, unlike previous crypto products that aimed to generate yield on Bitcoin directly, this offering centers around earning interest on cash deposits. The cash is managed by Lead Bank, a member of the FDIC, which ensures the funds are protected. River also reassures users that their Bitcoin is never at risk, as it remains in full reserve.
River operates as a Bitcoin-only startup, providing services such as investment management and secure storage. The company is fully regulated in the United States and follows rigorous compliance protocols, including Proof of Reserves, which enables clients to verify that their Bitcoin is held in full reserve independently.
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