Are you a Bitcoin (available on Coinbase) HODLer? If you are, LedgerX is launching a Bitcoin (available on Coinbase) savings account that might be right up your alley.
The LedgerX Bitcoin (available on Coinbase) Savings Account
The cryptocurrency asset management platform, LedgerX, is launching the first Bitcoin (available on Coinbase) (BTC) savings account that will be regulated by the Commodities Future Trading Commission (CFTC), reports Forbes. The goal of the Bitcoin (available on Coinbase) savings account is to provide investors with a fiat-based yield on their Bitcoin (available on Coinbase) holdings. This is done through a simplified version of a call overwrite.
All an investor needs to do is choose the implied rate they want to earn and the number of Bitcoin (available on Coinbase)s the yield will be applied to. Then, they just need to submit these choices to the LedgerX engine that is already powering their Bitcoin (available on Coinbase) options product.
The LedgerX Bitcoin (available on Coinbase) savings account has two CFTC licenses. One is the derivatives clearing organization (DCO) license, and the other is a swap execution facility (SEF) license.
The Bitcoin (available on Coinbase) savings account was designed based on LedgerX’s customer use patterns – but it isn’t for everyone. The product was designed to appeal to long-term Bitcoin (available on Coinbase) investors, those who prefer to HODL than to sell. The point of the accounts is to earn interest off of the Bitcoin (available on Coinbase) that is deposited into them – much in the way a regular savings account works.