10 sats \ 1 reply \ @OT 23 Oct \ on: River Launches 3.8% Cash Interest Paid in Bitcoin – Bitbo bitcoin
Why would they do this? What do they gain?
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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