River introduces a new product offering 3.8% interest on USD deposits, paid daily in Bitcoin, with funds insured by FDIC.

Key Takeaways

  1. River offers 3.8% interest on USD deposits, paid in Bitcoin.
  2. Deposits are insured by the FDIC up to $250,000 through a partner bank.
  3. Critics argue the interest may not beat inflation rates.
River, a U.S.-based financial services company focused on Bitcoin, has launched a new product offering 3.8% interest on USD deposits, with interest paid out daily in Bitcoin.
These deposits are insured by the FDIC for up to $250,000 through River’s banking partner.
BTC earnings on USD Unlike previous attempts by other companies that involved using Bitcoin for yield generation, River keeps Bitcoin separate, promising to hold 100% of Bitcoin deposits in reserve.
The company’s founder, Alex Leishman, emphasized that River does not take risks with users’ Bitcoin.
He explained:
We do not touch your bitcoin. Your bitcoin is held in 100% reserve custody. This is only interest on cash.
The yield comes from USD held in an FDIC-insured account, and the interest is auto-converted to Bitcoin.
Other rates While the 3.8% interest is competitive, higher rates of up to 7.50% are available through some traditional banking services.
River’s offering adds to the growing number of ways to accumulate Bitcoin, including other services like Fold, which provides Bitcoin rewards for spending.

My take:
Having been a Celsius customer I can tell you that this sounds exciting, but it's not.
Just buy Bitcoin with your extra Fiat currency and hold on to it.
This is the biggest scam. Just buy your own bitcoin and hold it yourself.
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Yes. I'm sure someone like me will think it's a great idea because he hasn't taken time to do the work in understanding the foundation of Bitcoin.
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10 sats \ 1 reply \ @OT 23 Oct
Why would they do this? What do they gain?
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They take your Fiat and lend it out and charge interest on it. It gives River a Fiat operating currency on the books and so they don't need to spend Their Bitcoin.
They can also borrow based on their Fiat holdings. The Bitcoin they purchase based on the return from lending is probably some hedge they have devised and they give you a small percentage based on their own hedge purchases.
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