River has introduced a new product that provides users with interest on cash deposits, which can be paid in USD or BTC.
The "Bitcoin Interest on Cash" feature pays a variable rate of interest, which currently stands at 3.8% as of Oct. 22.
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283 sats \ 1 reply \ @TheBTCManual 22 Oct
It sounds like a cool product, basically the tether trade, but you're giving up a few BIPs, if you are the type to buy on an exchange, and you're leaving funds to DCA and you collect interest in BTC on the cash balance that's an advantage
But what's the friction on this product as a US citizen versus the DIY option
Couldn't you just put your cash deposits in a money market fund or buy 3 month paper yourself and sweep the funds into Bitcoin?
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246 sats \ 0 replies \ @Wumbo OP 22 Oct
I had a similar thought. My initial thought on this product is that it might be a tie breaker if one is choosing between which KYC exchange one want to sign up with.
Also I think it could save someone a bank transfer, having their savings in the same business as where they buy BTC. You would not have to move the fiat interest to the exchange.
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0 sats \ 2 replies \ @ca 23 Oct
Genius! I wish we had access to something like that in my country.
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0 sats \ 1 reply \ @nym 23 Oct
A key thing they mention is they are not a bank. Your funds kept are FDIC insured but they're misuse of the funds are not. River has a good reputation, but anything can come in this space. Not your keys, not your coins.
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6 sats \ 0 replies \ @ca 23 Oct
Sure but you need to have them anyways in a bank. Bank A or Bank B, they're all at risk in that sense. This doesn't change that equation, I might as well have my TBill yields be converted automatically into ₿.
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0 sats \ 0 replies \ @XBTPlebDad 27 Oct freebie
River is a good company and I've used them since 2022, but I'm not a fan of leaving my Bitcoin on an exchange or leaving my Fiat in an account that isn't covered by FDIC or SIPC insurance.
It's a cool feature, but if Lead bank (their partner) fails, who knows if you'll ever see that Fiat. Not much different than neobanks.
I was a loyal WaMu customer in 2008, that was a lesson learned, especially after coming under Dimon's control.
I like Leishman and what he and his team on doing, but you can never be too cautious.