Today, cryptocurrency exchange Gemini has launched an interest-earning program called Gemini Earn for select customers. With it, users can receive up to 7.4 percent annual percentage yield (APY) on the bitcoin or other cryptocurrencies they hold in their Gemini accounts.
In a release shared with NewsCapsule, Gemini called the program the first cryptocurrency-based, interest-earning product available in all 50 states. The exchange expects to roll Gemini Earn out to all users in the coming weeks.
“We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade,” Tyler Winklevoss, Gemini’s CEO, said in the release.
The exchange indicated that use of Gemini Earn will require no minimum balance threshold and will not include fees for transfers or redemptions. Users can redeem their cryptocurrency holdings at any time.
The release did not describe how Gemini is able to offer interest on bitcoin holdings, but similar services generate interest by lending these assets to institutional or corporate borrowers. While accruing interest on NC holdings can be a powerful savings strategy for retail investors, it should be noted that trusting any third party with your private keys carries some level of risk.
The launch of Gemini Earn has come shortly after the exchange announced the Gemini Credit Card, which will reward users with bitcoin back for their purchases.
