The crypto exchange wants to seduce the long-term holders of cryptocurrency. Bitfinex thus announces an annual rate of return of 6.2% for Bitcoin and Ethereum. Holders of XRP tokens will also benefit from an interest rate of 4.9%. How to attract new customers and retain them? By promising them passive income, i.e. interest on the cryptocurrency kept in their account. This is in any case the strategy adopted by the Bitfinex exchange.
Thus, as of October 15, the crypto exchange will start paying interest to the holders of three popular crypto-actives. These are Bitcoin, Ethereum and XRP. It is for the first two that the returns will be the highest.
Bitfinex promises its customers an annual interest rate of 6.2%. This is a long way from traditional return on interests – but so is the level of risk. The owners of XRP are not too badly off with a rate of 4.9%.
In order to offer this interest, the exchange relies on a partnership with Celsius Network. The company offers a blockchain loan platform. It currently has more than a billion dollars in tokens and nearly 150,000 users.
Thanks to this partnership, crypto-bourse now has the opportunity to attract new customers and encourage asset retention.
“We hope that this offer will be of interest to customers who have purchased Bitcoin as a long-term store of value, and who also want to earn on their assets while they hold them,” comments its Chief Technology Officer, Paolo Ardoino.
In the trading world, Coinbase also announced a similar system for cryptocurrency traders. The annual interest rates are not in the same register, however. Coinbase pays 2% on DAI assets and 0.15% on USDC.
But for the company, this offer is first and foremost an alternative to traditional savings. Coinbase thus stressed that the passive income on these two stable corners represented a solution to the “historically low levels” of returns on savings accounts and government bonds.