raises interest rate on bitcoin and stablecoins as hunt for yield among traders soars

Quick Take

  • is now offering a 12% annual interest rate on stablecoin deposits 
  • The move would put them ahead of other leaders in the market, including BlockFi and Celsius 
  • is able to offer high rates because it has been able to charge a higher rate from institutional borrowers has added nearly $100 million in customer deposits since launching its interest-bearing retail accounts in June, and now it is looking to offer those clients an even higher rate.

The firm told The Block that it has raised the annual interest rate offered for deposited bitcoin from 4.5% to 6%, while the rate for stablecoins PAX and USDT has been increased from the current 7% to 12%. The move puts the company ahead of market leaders BlockFi and Celsius, which offer an interest rate of 8.6% and 8.69%, respectively, for select stablecoins. began offering high-yield interest account services in June. It also lends crypto to retail and institutional clients. 

Underpinning the adjustment by is a broader hunt for increasing yield opportunities across the crypto market among traders, coupled with breakneck growth in the lending business. BlockFi, for instance, adjusted its own rates in March, boosting the annual percentage yield for clients holding 5 bitcoin from 3.6% to 6%. On the borrowing s