21bitcoin Now Pays Interest on Idle Euros, Payable in BTC
By Mathew Di Salvo
AI summary of the source article
Austrian platform 21bitcoin has introduced a 1.21% variable annual interest rate on uninvested customer euro balances, allowing users to receive payouts directly in Bitcoin without conversion fees. The interest applies to all account euros, including funds reserved for limit orders and savings plans, with no lock-ups or minimum deposits required. Funds are held in segregated trust accounts at Volksbank Raiffeisenbank Bayern Mitte eG, a German bank holding a stake in 21bitcoin since 2023. The platform keeps no margin on the yield, which is subject to German withholding tax. Regulated under Austria's MiCAR and Germany's BaFin, 21bitcoin plans to introduce Bitcoin-backed loans and custody features by 2027.
Why it matters
21bitcoin claims to be Europe's first provider paying savings interest directly in Bitcoin, pitching its bank-partnered model in contrast to high-yield crypto lenders that previously collapsed.
Key facts
- 21bitcoin pays a 1.21% variable annual interest rate on uninvested euros, payable in Bitcoin with zero conversion fees.
- Customer deposits are held in segregated trust accounts at Germany's Volksbank Raiffeisenbank Bayern Mitte eG with no lock-ups or minimum balance requirements.
- The interest is subject to German withholding tax, and 21bitcoin states it retains no margin on the payout.