Key Takeaways
- River offers 3.8% interest on USD deposits, paid in Bitcoin.
- Deposits are insured by the FDIC up to $250,000 through a partner bank.
- Critics argue the interest may not beat inflation rates.
River, a U.S.-based financial services company focused on Bitcoin, has launched a new product offering 3.8% interest on USD deposits, with interest paid out daily in Bitcoin.
These deposits are insured by the FDIC for up to $250,000 through River’s banking partner.
BTC earnings on USD
Unlike previous attempts by other companies that involved using Bitcoin for yield generation, River keeps Bitcoin separate, promising to hold 100% of Bitcoin deposits in reserve.
The company’s founder, Alex Leishman, emphasized that River does not take risks with users’ Bitcoin.
He explained:
We do not touch your bitcoin. Your bitcoin is held in 100% reserve custody. This is only interest on cash.
The yield comes from USD held in an FDIC-insured account, and the interest is auto-converted to Bitcoin.
Other rates
While the 3.8% interest is competitive, higher rates of up to 7.50% are available through some traditional banking services.
River’s offering adds to the growing number of ways to accumulate Bitcoin, including other services like Fold, which provides Bitcoin rewards for spending.
