Bitstamp Raises Interest Rates for Crypto Lenders, $XRP Included

The world’s “longest-running crypto exchange ”Bitstamp announced a hike in interest rates for users lending out certain digital assets on its platform for 30 days, with $XRP lenders standing to gain among a number of other major digital assets.

According to an announcement from the cryptocurrency trading platform, until October 15, customers utilizing Bitstamp’s lending platform may reap rewards of up to 2.5% for XRP deposits, with USDT lenders witnessing a 6% yield on their assets. The other cryptocurrencies encompassed in this promotional initiative — Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) — offer returns ranging between 3% and 5%.

It should be noted, however, that these Bitstamp lending services 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.

According to their risk disclosure statement, the firm has entered a collaboration with Tesseract, a digital asset lending company regulated by the Finnish Financial Supervisory Authority, to oversee its crypto lending endeavors.

Per Bitstamp, Tesseract “only lends to reputable institutions and only after they have undertaken a rigorous risk assessment and credit evaluation.”

Earlier this year, as CryptoGlobe reported, Bitstamp started supporting EUR-backed IOUs on the $XRP Ledger in a move that brings “secure, cost-effective” transactions in the fiat currency to the ledger.

The firm’s move started 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. The exchange lists as key benefits the “secure, cost-effective, fast and reliable transfers of IOUs,” as well as increased transparency and visibility of transactions.

According to the exchange, all funds are “safely stored on Bitstamp through our custodian partners,” and the new offering gives users access to the decentralized finance (Defi) ecosystem of the $XRP Ledger.

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