Luno cryptocurrency exchange app is now offering a ‘savings wallet’ that will allow its users to earn up to 4% in annual interest on BTC held. The exchange, which was recently acquired by popular blockchain investment firm, Digital Currency Group, is looking to tap into its 5 million user base by offering better rates than most traditional banks worldwide.
According to research conducted by Luno, 54% of its clientele earn zero percent interest on their cash deposits with local banks. The analysis also revealed, and it’s no surprise, that 95% of Luno users would like to earn interest on their crypto deposits.
The firm has since embarked on offering its new Bitcoin Savings wallet, which will pay out interest every month. Notably, this service carries no fees or fixed terms; users can withdraw their funds at any time. Luno Co-founder and CEO Marcus Swanepoel said that,
“In a time of economic uncertainty, the Bitcoin Savings Wallet is a safe alternative for anyone looking to make meaningful savings on their money.”
He highlighted that this milestone comes when the global community could benefit from investing in a ‘currency’ that is not correlated to an unhealthy economy. Luno, a U.K domiciled company, is currently available in Europe but does not serve the U.S market despite its burgeoning prospects.
The new Bitcoin savings feature by Luno coincides with the recent developments in Decentralized Finance (DeFi), where traditional financial products are now integrated with decentralized protocols. These innovations have been on the rise as speculators and fundamentalists invest in building this ecosystem. Nonetheless, it has presented some challenges, especially with scammers taking advantage of unsuspecting investors.