According to CoinDesk, Bitcoin financial services company River Financial has launched a new product that allows users to earn interest on cash deposits, which can be paid in either Bitcoin (BTC) or US dollars (USD). The feature, named 'Bitcoin Interest on Cash,' offers a variable interest rate, currently set at 3.8% as of October 22.
River has partnered with Lead Bank, a member of the Federal Deposit Insurance Corporation (FDIC), ensuring that user deposits are protected up to $250,000. This collaboration aims to provide bitcoin users with the dual benefits of maintaining a cash buffer for expenses while earning BTC. The initiative encourages customers to keep their cash on River's platform instead of traditional banks.
The company emphasizes that its offering is distinct from other bitcoin yield-bearing products that have previously faced issues. River clarifies that it provides yield on customer cash, not their bitcoin. 'River protects your assets with FDIC-insured cash and bitcoin that is always held in reserve,' the firm stated in the announcement.
Alex