- Gemini has launched an interest-earning program called Gemini Earn for select customers
- The product is part of Gemini’s move to bring banking services to its customers
- With this product, users can receive up to 7.4 percent annual percentage yield (APY) on the digital asset they hold
Gemini, the New York-based crypto exchange and custodian, has announced the launch of a new product, Gemini Earn to offer customers up to 7.4 percent annual percentage yield on crypto deposits.
To launch the product, Gemini partnered with the crypto lending platform Genesis. Gemini has referred to its newest product as the first cryptocurrency-based, interest-earning product available in all 50 states. A global rollout is expected in the coming weeks.
Tyler Winklevoss, Gemini’s CEO, said in the release;
We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade.
How the Gemini Earn Will Work
Gemini Earn is a continuation of the exchange’s desire to expose crypto users to traditional financial services, only this time with cryptos. One of its latest launches is the Gemini credit card. The card rewards users with Bitcoin for their purchases.
Although the APY percentage pales in comparison to the rewards of yield farming interest rates in decentralized finance (DeFi), the company hopes it will give its users a reason to keep their crypto on the Gemini platform.
Gemini Earn will be available in all 50 states, and the exchange has indicated that there will be no minimum requirements for users to access this service. Another plus is that there will be no fees for transfers or redemptions. Users can redeem their cryptocurrency holdings at any time.
On the Flipside
- Australia’s largest exchange, Independent Reserve has announced that it will delist BSV after it issued threats to Bitcoin developers
- BSV holders on the exchange have been six months to exchange or withdraw their BSV funds
- More exchanges may take this route as holders of the BSV token appear to be losing interest
To successfully launch the Gemini Earn, the exchange had to partner with the lending platform, Genesis. For the interest services to work, the exchange will collect part of the spread between interest paid on the crypto and interest Genesis charges on its loans to institutions.
Before the partnership was completed, Gemini had reviewed Genesis’ financial statements. Gemini’s head of risk, Yusuf Hussain also said that they also verified that the lender’s loans are overcollateralized.
In the official announcement, Gemini did not describe the method it would use to offer interest on bitcoin holdings. However, similar services on other platforms generate interest by lending these assets to institutional or corporate borrowers.
The product is open to active Gemini customers currently and will be rolled out to all Gemini customers later this month.