- “This is a powerful use case in market conditions where Bitcoin is not appreciating,” Ledgerx CEO.
- The Bitcoin savings will accrue interest of about 16% per year.
- Ledgerx plans to introduce Ethereum (ETH) savings in future.
The CFTC-regulated Ledgerx has announced the launch of ‘Ledgersavings’ platform. It is an entirely new service that has been developed to give Bitcoin Core (BTC) holders an opportunity to an interest on the savings made on the platform. Bitcoin savings will accrue interest of about 16% per year. The good news for the holders is that the coins attract interest even in those periods when the price of Bitcoin is not appreciating.
The company behind Ledgerx, the clearinghouse and options exchange said back in May that it intends to introduce a saving program to cater for Bitcoin users. It is regulated by the Commodities Futures Trading Commission (CFTC) in the United States. Moreover, it has been involved with BTC derivatives trading for a while now. The launch is, however, a soft one and marks the first of its major launches since the company began offering digital currency options. The CEO of Ledgerx, Paul Chou said during the launch:
“I’m excited to announce the soft launch of Ledgersavings, the first major new service since we launched Ledgerx late last year,” Chou details. “The first transaction was completed a few weeks ago and yielded the client a 15% per annum return on their Bitcoin for the next 6 months, even if Bitcoin depreciates or stays at current levels. This is a powerful use case in market conditions where Bitcoin is not appreciating.”
Although the annual interest rate has been capped at 16%, the users of Ledgersavings can opt for a 3-month or 6-month maturity period. The interest on the asset is payable in USD held by a bank in the United States while the coins will remain in the custody of Ledgerx.
“We list contracts that have a defined maturity, an interest percentage in USD that you receive up front, and the terms of when you might exit the underlying Bitcoin. It provides an intuitively simple way to monetize an innate quality of Bitcoin — high volatility. You deposit Bitcoin, choose an interest rate, and you can get the cash today.”
While many people hold virtual currencies, the platforms available online are not regulated. Ledgerx is redefining crypto savings in the industry. Significantly, the company is the only CFTC-regulated saving platform for BTC. The CEO said that there are plans to introduce Ethereum (ETH) savings in future.