OKEx Launches OK PiggyBank, Letting Users Earn Interest on Their Crypto Holdings

Francisco Memoria

Prominent cryptocurrency exchange OKEx has recently launched its OK PiggyBank feature, which essentially lets its users earn interest on their crypto holdings by lending them to margin traders.

According to the company’s recent announcement, the lending process is set to be managed by OKEx itself, and it’ll see lenders earn 85% of the interest collected from margin traders, and the exchange take 15% as profit.

https://twitter.com/OKEx/status/1077776821683392514

The OK PiggyBank feature is being launched after spending a month in a beta testing period. Users who choose to lend their tokens for a profit will be facing a relatively high deposit limit or available cryptos, of well over $1 million. Whether there’s a minimum lending amount if unclear.

Supported cryptocurrencies currently include bitcoin, litecoin, ether, EOS, XRP, and USDT. These are all available for margin trading on the platform. The profits OKEx gets from the OK PiggyBank are set to be injected into its insurance fund, used to cover socialized losses.

The feature reportedly left beta on December 26, and is now available to all of OKEx’s users. Similar features are available in a few other cryptocurrency exchanges that offer margin trading options, including Circle-owned Poloniex and Bitfinex.

Notably, the cryptocurrency exchange has been worrying some in the last few months, as in three delisting rounds it has removed 135 trading pairs. The exchange has earlier this year noted it would be listing more stablecoin pairs, other than USDT.

As CryptoGlobe covered, OKEx has earlier this year been accused by Chinese national media of illegally trading bitcoin futures in the country. Cryptocurrency exchanges have been banned in the country since last year.

Outside of cryptocurrency exchanges, there are ways to earn interest on cryptocurrency holdings. Cryptocurrency lending firm Compound, for example, allows users to lend their tokens to borrowers. IT has recently launched a protocol to help users short cryptocurrencies.