Bitwala, a German blockchain banking firm has joined hands with a decentralized fund platform called Celsius, to offer yearly interest on Bitcoin (BTC) holdings of up to 4%. Customers who deposit their assets using Bitwala’s Bitcoin Interest Account will be credited to institutional borrowers by means of Celsius, gaining weekly interest on their Bitcoin as BTC.
Users can deposit from $12 worth of BTC into Bitwala’s interest accounts, and can deposit and withdraw funds whenever they feel like. They would be charged only with network fees. Investments and withdrawals are handled without cost to the user.
Celsius has encouraged over $6.2 billion since launching during June 2018, with the firm giving loans to a network of more than 150 institutional borrowers. Celsius takes 20% of the interest earned on user funds, paying the staying 80% legitimately to users.
With worldwide financial conditions decaying and banking interests quickly lessening, Celsius founder Alex Mashinky contends that offering simple access to interest income opens a multi-billion man market for digital currency.
“Seven billion people want to earn yield and want to earn interest. If you could just do that, and do it ten, twenty, fifty times better than your bank, and you build trust — that’s how you win [people] over.” he said.