Bitwala, the German blockchain banking company, has partnered with the pioneering decentralized financing platform Celsius, or DeFi, to offer an annual interest in Bitcoin’s (BTC) shares of up to 4%.
Funds deposited by clients who choose to use Bitwala’s interest account will be lent to institutional users through Celsius, earning a weekly interest on their Bitcoin and delivered to them in the same crypt-currency.
In the midst of the pandemic crisis, the crypt-currency lender Celsius reaches 50 thousand in Bitcoin deposits
German bank blockchain integrates Celsius
Bitwala sees DeFi as „a new way of generating wealth,“ emphasizing the opportunity for passive income to be generated from cryptomoney stocks.
Users can deposit as little as $12 Bitcoin Trader – Immediate Edge – Cryptosoft – Bitcoin Profit – Bitcoin Code equivalent into Bitwala interest accounts, and can add and withdraw funds at any time. Only network fees are incurred when using the account, and investments and withdrawals are processed at no cost to the user.
Celsius CEO talks about why Bitcoin’s price didn’t explode during the Coronavirus pandemic
Celsius has provided more than $6.2 billion since its launch in June 2018, with the firm providing loans to a network of more than 150 institutional borrowers. Celsius takes 20% of the interest earned from user funds, and pays the remaining 80% directly to users.
Profits generated by the application change slightly each week in response to market dynamics.
DeFi loans as a catalyst for widespread adoption
Speaking to Cointelegraph, Celsius founder, VoIP patent holder and renowned Internet entrepreneur Alex Mashinky said the DeFi platform was designed „to create something that would be more useful and create less volatility“ and drive widespread adoption.
DeFi loans attract venture capital backing despite large drop in crypto fundraising
With deteriorating global economic conditions and rapidly declining bank interest rates, Mashinky argues that providing easy access to interest income opens up a multi-billion dollar market for cryptomoney.
„Seven billion people want to make a profit and they want to earn interest. If you could do that, and do it ten, twenty, fifty times better than your bank, and build trust, that’s how you win [people] over.