Cryptocurrency wallet provider Blockchain.com announced an increase in annual interest rates on deposits for Bitcoin and USDT and Paxos stablecoins.
For BTC, the growth rates were increased from 4.5% to 6% with a minimum deposit of $300, for USDT and PAX from 7% to 12% with a minimum deposit of $100. For Ethereum, the second largest cryptocurrency by capitalization, the rate remained the same 5% with a minimum deposit of $100.
In a commentary to The Block, Blockchain.com CEO Peter Smith stated that the company could afford such a rate hike thanks to the revenues it generates from a lending service aimed at institutional investors.
He added that the company will remain profitable at such rates for retail clients, as it can charge higher fees from companies wishing to take out cryptocurrency loans. The documents presented to the publication confirmed his words.
As a reminder, Blockchain.com launched cryptocurrency interest accounts in May 2020.
Other firms provide similar services. Landing platform BlockFi introduced crypto deposit accounts with yields of up to 6.2% per annum in March 2019. This year, she also increased interest on deposits.