Blockchain.com Rolls Out Bitcoin Interest Accounts

The service will be restricted in the US, Canada, and Japan.

Blockhcian.com, one of the early crypto wallet platform, has rolled out interest-bearing accounts for deposited digital assets.

Announced on Friday, the stored Bitcoins on the wallet platform will receive an interest of 4.5 percent annually.

“Banks around the world are not only cutting the interest they pay on savings accounts to near-zero, some have even introduced negative interest rates,” the official announcement stated. “Compare that to 4.5% and it’s easy to see why it pays to hold crypto in an Interest Account.”

This came after the United Kingdom-headquartered company first announced the development of such accounts last week.

It is to be noted that the users of the wallet need to apply separately for the interest-bearing accounts.

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“Simply visit your Blockchain.com Wallet, select the Earn Interest, and open an Interest Account today to immediately begin earning 4.5% annually,” the announcement added.

The new services are only available to the wallet users who have completed know-your-customer (KYC) processes; however, it will not be available to customers based in the United States, Canada, and Japan.

A new wave in crypto

Crypto interest accounts are becoming very popular lately. Though mainstreamed by decentralized finance (DeFi) platforms, many wallets and exchanges are also starting to offer similar services. Most recently, Delta Exchange, a crypto derivatives trading platform, launched interest-bearing accounts for trades on the platform, sweetening its offerings.

Founded in 2011, Blockchain.com is one of the oldest companies in the crypto arena and is known for it’s free to use Bitcoin wallet.

The platform, however, is now focusing on diversifying its businesses tapping into other crypto sectors, including exchange and lending.

The recent announcement did not clarify how the platform is going to pay out the interests – if they will directly link these accounts to its lending platform or are following some other business model.