Austrian Bitcoin platform 21bitcoin will start paying an annual interest rate of 1.21% on uninvested euro balances of customers from today onwards, and this interest can be directly claimed using BTC without any conversion fees.
The company claims that this is the first service in Europe that directly pays savings interest in Bitcoin.
The company stated that this interest covers every euro in the account, including cash reserved for the next savings plan purchase or for unexecuted limit orders. This service has no minimum deposit requirement and no lock-up period.
Co-founder and CEO Daniel Winklhammer stated: "Accumulating wealth with Bitcoin does not begin with the actual purchase, but rather with the euros set aside for that purchase."
This funds were paid by the German banks Volksbank Raiffeisenbank Bayern Mitte and eG. Since 2023, these banks have held shares equivalent to 21 bitcoins.
The customer's euros are held in a segregated trust account with the bank in the form of immediately available savings. It is stated that they will transfer the full amount of interest to the customer without charging any margin themselves. The company positions this as a clear contrast to the high-profit promises that led to the collapse of several crypto lending institutions.
The interest rate is floating, and interest is subject to German withholding tax.
This launch follows closely on 21bitcoin's zero-fee Bitcoin savings plan introduced earlier this year. Last year, the company also collaborated with VR Bank Bayern Mitte, eG, and Sopra Financial Technology GmbH to launch a pioneering European pilot project, with the aim of developing institutional-level Bitcoin mortgage credit products.
The company plans to launch Bitcoin mortgage loans, insured cold storage, and multi-signature inheritance custody services in 2027.
21bitcoin was established in 2021, holds a license with the number MiCAR in Austria, and has been authorized by BaFin in Germany. The company claims that it has over 100,000 users and a trading volume of more than 650 million euros.
