Bitwala, a Berlin-based crypto-friendly bank, has joined forces with Celsius, a leading crypto lending platform, to offer its clients up to four percent annual interest on their Bitcoin (BTC) holdings. With the innovative initiative, Bitwala has become the first-ever traditional bank to offer users interest on their crypto holdings, according to reports on May 14, 2020.
Bitwala Bank Gets Even Better
At a time when interest in the world’s flagship cryptocurrency is at a very strong point, with bitcoin enthusiasts anticipating another strong bull run, Bitwala has joined forces with Celsius Network to spice up the party for Bitcoin (BTC) hodlers.
Per sources close to the matter, regulated German neobank Bitwala has joined forces with Celsius crypto lending platform to make it possible for clients to earn up to four percent interest annually on their bitcoin deposits.
While a handful of decentralized finance (DeFi) platforms including BlockFi, Constant and ETHlend offer users interest on their bitcoin holdings, Bitwala has made history as the first regulated fiat bank to achieve such a milestone.
Founded in 2015, Bitwala is under license from Germany’s SolarisBank and the former boasts over 80,000 customers, with a presence in 32 European jurisdictions. Bitwala says its users can purchase and hold as little as EUR 10 ($10.8) and earn weekly interests.
The firm says interest rates are calculated by Celcius every week based on the demand for bitcoin by institutional borrowers. Importantly, Bitwala has made it clear that the service comes with no additional fees.
Commenting on the innovative initiative, Ben Jones, CEO of Bitwala reiterated that the move is a forward-thinking maneuver, especially at this when the world is battling with the COVID-19 induced financial crisis.
In his words:
“At this time, more and more people rust in Bitcoin. Bitwala is the everyday bridge to it. We are now partnering with Celsius Network, a leading provider of crypto loans so that our customers can leverage bitcoin holdings wherever they are.”
Bitwala offers users regular banking and cryptocurrency trading services through its app or on desktop. Users are also provided with a contactless Mastercard debit card for seamless fund withdrawals.
It’s worth noting that the gap between traditional finance and the cryptospace is gradually closing up with each passing day.
As reported by BTCManager on May 12, America’s largest bank, JPMorgan inked a partnership deal with leading cryptocurrency exchanges, Coinbase, and Gemini. The deal will enable JPMorgan to offer banking services to the bitcoin trading platforms.