Bitcoin IRA to Launch Interest-Earning Crypto Accounts Next Month
Bitcoin IRA has partnered with digital asset lending firm Genesis Capital to offer investors the opportunity to earn interest on cryptocurrency and cash holdings.
BitcoinIRA has partnered with digital asset lending firm Genesis Capital to offer investors the opportunity to earn interest on cryptocurrency and cash holdings.
As an Oct. 21 press release notes, Los Angeles-based Bitcoin IRA has provided digital asset individual retirement account (IRA) solutions since 2016 and processed over $350 million in investments, onboarding 4,000 clients.
Genesis Capital — a spin-off of over-the-counter (OTC) cryptocurrency broker Genesis Global Trading — has reportedly now lent in excess of $2.3 billion in cumulative originations and reported a 75% upturn in crypto and cash loans in Q2 2019.
Interest earned can help offset fees
Bitcoin IRA COO, Chris Kline, has argued that adding interest-earning accounts to the firm’s crypto and cash lending program will help spur decentralized finance forward, claiming that:
“Borrowing and lending using cryptocurrencies and cash are providing new and safe opportunities for our clients to maximize the growth of their retirement accounts. Interest earned by a client can offset trading fees or custodial holding fees, essentially creating a free account making these fees a thing of the past."
The first interest-earning accounts will reportedly be rolled out in November to a limited number of participants on a first-come, first-served basis. According to the firm, annual interest rates will vary based on the given coin and term length, with finalized details of the program to be announced in the future.
The press release notes that the new product follows Bitcoin IRA’s recent launch of crypto swaps and biometric security.
Qualified with U.S. regulator FinCEN, Bitcoin IRA’s technology supports self-directed retirement accounts that allow investors to create a digital asset IRA account, transfer funds from an existing IRA custodian and trade their crypto holdings in real-time via an OTC liquidity provider.
The firm collaborates with BitGo to provide clients with multi-signature digital wallets.
As reported, the popularity of digital asset IRA accounts was in full swing in 2017, notwithstanding concerns over asset volatility.
Experienced traders have meanwhile advocated for the significant tax advantages of IRAs.