On September 12, 2023, Bitstamp, the crypto exchange that was founded in 2011, shared a blog on its official site in which it noted about its “lending revolution.” According to Bitstamp, it is “raising the bar even higher by introducing our Earn Lending Promo, a golden opportunity to tap into an exclusive up to 6% APY on top crypto assets.”
Lend boldly and earn with confidence. Don’t miss out on this #CryptoYield surge! 🎉
Ready to dive in? Explore the full article on our blog 👉… pic.twitter.com/ie3iOIv9zw
— Bitstamp (@Bitstamp) September 13, 2023
One of the oldest crypto exchanges in the industry Bitstamp announced a hike in interest rates for users lending out certain digital assets on its platform for 30 days. According to an announcement dated October 15, 2023, customers utilizing its lending platform may “reap rewards of up to 2.5% for XRP deposits, with USDT lenders witnessing a 6% yield on their assets.”
Whereas, the other cryptocurrencies encompassed in this promotional initiative — Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) — offer returns that range between 3% and 5%.
However the lending services of the crypto exchange remain “inaccessible for clients from the United States, United Kingdom, Singapore, Japan, and Canada.” Operational under “the ‘Bitstamp Earn’ moniker, the firm’s lending arm functions distinctively from its core trading platform.”
Bitstamp’s Risk Disclosure Statement
According to the risk disclosure statement, Bitstamp added it has “entered a collaboration with Tesseract, a digital asset lending company regulated by the Finnish Financial Supervisory Authority, to oversee its crypto lending endeavors.”
According to Bitstamp, Tesseract “only lends to reputable institutions and only after they have undertaken a rigorous risk assessment and credit evaluation.”
It must be noted that earlier this year, Bitstamp started supporting EUR-backed IOUs on the $XRP Ledger in a move that enables “secure, cost-effective” transactions in the fiat currency to the ledger.
Notably, the move started by allowing its customers to take advantage of the $XRP Ledger, which has near-instant settlement times and negligible transaction fees to transfer EUR across the network. Key benefits include “secure, cost-effective, fast and reliable transfers of IOUs,” as well as “increased transparency and visibility of transactions.”
As the crypto exchange stated, all funds are “safely stored on Bitstamp through their custodian partners.” Meanwhile, the new offering gives users access to the decentralized Finance (DeFi) ecosystem of the $XRP Ledger.
Earlier last month, Bitstamp further announced that it will suspend trading of several popular altcoins for its U.S. customers. The affected coins are AXS, CHZ, MANA, NEAR, SAND and SOL. The exchange said that this decision was made due to regulatory concerns in the U.S.
Update for our US users 📢
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
— Bitstamp (@Bitstamp) August 8, 2023