On October 22, River, a U.S.-based Bitcoin financial services company, announced the launch of its new product, Bitcoin Interest on Cash, which allows investors to earn interest on their cash deposits and receive payments in Bitcoin. This new offering is designed to help individuals grow their savings in a volatile economic environment while ensuring security through FDIC insurance on cash deposits.
The key feature of this product is that users can earn 3.8% interest on their cash deposits, which can be paid in either USD or Bitcoin. This interest rate is subject to change, but as of 22 October 2024, the 3.8% rate offers an opportunity for investors seeking higher returns than those typically available in traditional savings accounts. River emphasizes that FDIC insurance protects cash deposits up to $250,000, while Bitcoin is held in full-reserve custody, ensuring added security.
River claims that this product offers a solution to the diminishing value of traditional savings accounts, which often struggle to keep pace with inflation. The company states that Bitcoin Interest on Cash allows users to benefit from the stability of cash while tapping into Bitcoin’s potential for higher returns. Over the past two years, River notes that this product could have generated returns 16 times greater than the average savings account.
According to Alex Leishman, CEO of River, this product provides a new way for individuals to protect their wealth in the current financial climate. He believes that combining the reliability of cash with the opportunity of Bitcoin offers a promising avenue for investors looking to diversify their savings strategies.
River also highlights that, unlike past crypto products that attempted to generate yield on Bitcoin itself, this product focuses on earning interest on cash deposits. The cash is held with Lead Bank, a member of the FDIC, which manages the funds and provides insurance. River further reassures its users that their Bitcoin will never be put at risk, as it remains in full reserve.
River is a Bitcoin-only startup offering services such as investment management and secure storage. The company is fully regulated in the United States and adheres to strict compliance measures, including Proof of Reserves, which allows clients to independently verify that their Bitcoin is held in full reserve.
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