The cryptocurrency exchange Gemini… launched a savings product, dubbed Earn, that lets customers move their holdings in Bitcoin, or any of the 26 cryptocurrencies Gemini supports, into accounts yielding interest as high as 7.4%.
Gemini said it can afford to pay relatively high rates… because it lends the cryptocurrency deposits to institutional borrowers through a partner, Genesis Global Capital, at a higher interest rate.
Gemini touts Earn as the first account of its kind available in all 50 states. Crypto lender BlockFi offers an account with up to 8.6% annual percentage yield (APY) on deposits, but it is not available in New York. Gemini, by contrast, is regulated by New York’s Department of Financial Services. Earn will not, however, be available to clients outside the U.S.
[Gemini] … expects later this month to allow clients of competing exchanges to transfer their assets into Earn accounts. Account holders can withdraw their crypto assets at any time without penalties or fees.
… Gemini’s chief operating officer, said the product should be seen as more of an investment than a savings account. “It lets investors put their passive crypto assets to work and earn a return at competitive rates.”