Users of the Luno exchange can now earn passive income on Bitcoin [BTC] holdings via the firm’s new “savings wallet.”
Revealed earlier today on Monday, the product is claimed to bring bitcoin savers up to 4% in interest per annum, with no fixed terms.
Luno – that is owned by Digital Currency Group [DCG] – said users can withdraw their bitcoin from the savings wallet into their normal wallet at any time.
Interest is calculated on the primary of each month.
The firm’s CEO & co-founder, Marcus Swanepoel, added within an official announcement that the wallet was launched after 95% of consumers indicated they might wish to earn interest on their holdings.
The rate of interest offered is “much higher” than those currently offered by traditional savings schemes in regions like Europe, he added.
The firm’s research found that 54% of respondents earned zero interest on their cash savings globally.
Luno was acquired by DCG earlier in September, with the exchange to still operate independently as a part of the blockchain investment company’s group.
The bitcoin savings product comes at a time when investors are increasingly turning to ways to earn income from their crypto holdings aside from merely holding within the hope of gains.
The area of decentralized finance, or DeFi, has soared over the last six months because the concept of “yield farming” saw wider appeal as a way to earn rewards by loaning liquidity.
However, DeFi, with its sometimes unproven protocols & anonymous founders, also carries risk.