A Delaware-based cryptocurrency startup called BitLeague has recently launched a Bitcoin term deposit product designed to bring mainstream-like services to the crypto economy and attract new users.
The move was announced at Consensus 2019 and, according to a press release, the term deposit will offer 9% annual interest, with a lock-in period of 3 to 36 months. Adnan Gilani, the company’s president, was quoted as saying:
Our mission is to create a more equal, open financial platform, which brings more benefits to users, grows their wealth, and provides more liquidity to the system. The commercial bank only pays about 2% for one year Certificate of Deposit, we offer 9% fixed rate, this is how we add value to our clients.
The move highlights a new trend in the cryptocurrency space that has been seeing firms launch new products that allow users to earn interest on their cryptocurrency holdings. Crypto lending firm BlockFi, for example, has launched a cryptocurrency deposit account offering users over 6% a year in compound interest.
Nexo, a Switzerland-based startup, has also been offering users ‘instant’ cryptocurrency-backed loans, offering investors up to 6.5% interest on stablecoins. Similarly, cryptocurrency wallet Cobo offers options that let users earn income on their crypto holdings.
BitLeague itself is set to also launch a zero-commission trading service in 14 states in the United States, with the goal of helping “people to adopt bitcoin, the next generation sound currency for everyone.”
The firm’s products are notably hitting the market at a time in which bitcoin, the flagship cryptocurrency, is seeing its price surge. According to CryptoCompare data, BTC is now trading over the $8,000 mark, after rising 49% in the last two weeks.