Dubbed Gemini Earn, the program lets customers earn up to 7.4% annual interest on all cryptocurrencies supported by Gemini, the firm announced Tuesday. The platform supports 26 cryptos like Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Zcash (ZEC) and others. The program is immediately available for select Gemini customers, while a full-scale rollout is scheduled for early February.
Gemini chief operating officer Noah Perlman told that interest rates for each cryptocurrency are based on supply and demand in the market for borrowing that crypto. Interest is compounded and paid daily, with earnings being generated in the same cryptocurrency as the deposited funds.
Gemini Earn will be run as part of the Gemini platform, enabling customers to transfer existing crypto holdings or purchase crypto to send to Gemini Earn. The program allows users to earn interest for any period of time, requiring no minimum balance.
As a Trust company regulated by the New York Department of Finance, Gemini positions its new product as the only crypto interest-earning program available in all 50 states. As Gemini is not the lender or borrower, the firm’s partners like Genesis Global Capital are crucial in providing this product, Perlman noted. “Our vetted institutional lending partners, such as Genesis Global Capital, find these borrowers and lend crypto funds in exchange for an interest payment,” he said.
Gemini CEO Tyler Winklevoss said, “We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade.”
The launch of Gemini Earn comes shortly after the exchange released its new credit card in mid-January 2021, which allows users to earn crypto rewards on everyday purchases in crypto. As previously reported, Gemini is apparently planning to pursue a public listing.