When Luno, a global cryptocurrency exchange, announced its savings wallet in October 2020, nearly 250,000 users moved their crypto assets to the new platform.
As of Monday, March 8, 2021, the exchange said it has paid out over $500,000 worth of Bitcoin (BTC) in interest alone.
Although Luno suggests the outcome was because it made the savings product as straightforward as possible, it is more likely due to the growing desire by investors to diversify their crypto holdings and take advantage of different use cases.
For many crypto customers, their awareness of the crypto use cases begins with buying and ends with trading it on the exchange. However, cryptocurrencies can be used for many more things including cross-border payments, lending, etc.
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The Luno Savings was introduced in October 2020 as a feature that allows users to save their crypto assets at an interest rate of ~4 percent per annum. The prorated earnings are paid in bitcoin directly into the Savings Wallet on the first day of each month. Users have a choice to withdraw the earnings immediately or leave it in the wallets to compound and grow exponentially.
The company, which recently celebrated hitting a 7 million user base milestone, also announced on Monday that it has added two new cryptocurrencies to Luno Savings, Ethereum, and USDC Savings. Users now have more ways to earn up to 4 percent per annum interest on Ethereum and 7.6 percent per annum on USDC.
“With Ethereum and USDC Savings, it’s more of the same – only with cryptocurrencies that offer different and exciting use cases and even higher interest rates,” Luno said. “Interest is paid out every month in the cryptocurrency you’re saving in – all you need to do is move it in and you’ll start earning immediately.”
There are no minimum deposits and no fixed terms.
