European cryptocurrency exchange Bitstamp has introduced a temporary boost in interest rates for customers engaging in XRP lending, extending to other cryptocurrencies like Ether (ETH), Tether (USDT), Litecoin (LTC), and Bitcoin Cash (BCH). This initiative aims to provide enhanced yield opportunities for crypto holders.
Yield Rates and Duration
Bitstamp users lending XRP can earn up to 2.5% on their deposits, while those offering USDT can benefit from interest rates of up to 6%. This promotional offer is available for a limited time, running until October 15. For other supported altcoins, the interest rates range between 3% to 5%.
Bitstamp’s lending services are accessible to customers outside the United States, United Kingdom, Singapore, Japan, and Canada. The offering is part of Bitstamp’s Bitstamp Earn product, which operates separately from its primary cryptocurrency trading platform.
Partnership with Tesseract
Bitstamp collaborates with Finland-regulated Tesseract for its crypto lending services. Tesseract caters to institutional investors and maintains a stringent 100% collateralization ratio for stablecoin loans. It accepts liquid crypto assets like BTC, ETH, XRP, AVAX, DOT, and major stablecoins as collateral.
In response to industry challenges and the need to maintain trust, Bitstamp provides monthly transparency reports on its lending operations. This transparency is designed to instill confidence in its lending business model.
Attracting Crypto Investors Amid Bearish Market
Bitstamp’s move to increase interest rates seeks to reignite interest in crypto lending, especially during a period of generally bearish market conditions. Earning interest on dormant crypto assets offers users an attractive opportunity to optimize their holdings while awaiting a market recovery.