Bitstamp is letting holders of XRP and other crypto assets earn additional yield for a limited period.
European-based cryptocurrency exchange Bitstamp is boosting interest rates for customers lending XRP for 30 days. The boost will also affect other crypto assets such as Ether (ETH), Tether (USDT), Litecoin (LTC), and Bitcoin Cash (BCH).
Notably, Bitstamp customers can earn up to 2.5% on XRP deposits, while USDT lenders earn up to 6% on their assets.
The latest Bitstamp promotion runs until October 15, with interest rates for other altcoins involved in the promotions falling within the 3% to 5% range. Bitstamp lending services are only available to customers outside the United States, United Kingdom, Singapore, Japan, and Canada.
Additionally, Bitstamp’s lending product, branded Bitstamp Earn, operates as a separate offering from the company’s cryptocurrency trading platform. Bitstamp reveals on its lending risk disclosure page that it has partnered with Finland-regulated Tesseract for its crypto lending business.
Like other crypto lending firms, Tesseract lends to institutional investors but strives for a 100% collateralization ratio for all stablecoin loans. The company also accepts only liquid crypto assets like BTC, ETH, XRP, AVAX, DOT, and major stablecoins as collateral.
Bitstamp tries to reignite user interest in crypto lending
Launched in 2011, Bitstamp is one of the longest-running cryptocurrency exchanges and also offers lending for nine assets via its partner, Tesseract.
However, the cryptocurrency lending business has come under pressure to maintain the highest standards following the implosion of major lenders like Celsius and BlockFi last year.
Bitstamp provides monthly transparency reports on its lending operations to boost confidence in the business model.
The company will also hope that the recent bump in interest rates will attract crypto investors, especially as market conditions remain largely bearish. Earning interest on idle crypto is an enticing prospect, allowing users to maximize their holdings while waiting for a market recovery.
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