![]() ![]() All loans made via the Gemini Earn platform are unsecured, exposing lenders to greater credit risk. Image created by Market Business News.Īlthough institutional clients are increasingly drawn to the greater yields available with crypto lending than conventional bank deposits, there are still substantial risks involved. Gemini’s chief operations officer, Noah Perlman, recently told The Block that institutional borrowers are attracted to digital assets to “use it to fund their operations and investment strategies”. Gemini Earn and other cryptocurrency-based lenders like BlockFi and Ledn are able to provide such competitive rates of interest – compared with traditional savings accounts – due to the accelerated demand for crypto assets among institutional clients. The Gemini Earn program already supports a string of established cryptocurrencies like Bitcoin and Ethereum. The daily interest begins to accrue from 4pm ET on the subsequent business day after crypto holdings are transferred to Gemini Earn. In exchange, investors will rake in interest worth over 100 times the national average rate of interest in traditional US savings accounts – which is currently below 0.05% per year.Īccording to Buy Bitcoin Worldwide, the biggest differentiator between Gemini Earn and other leading cryptocurrency interest platforms is that the former pays its interest daily. ![]() Gemini Earn attempts to incentivize crypto investors to buy and hold GUSD. Although Gemini Earn already supports interest on DAI, this is considered an algorithmic stablecoin that’s not underpinned by fiat currency. The Gemini USD stablecoin is the first stablecoin to be pegged to the US dollar and made available via its Earn service. Gemini, one of the world’s leading cryptocurrency exchanges and founded by the infamous Winklevoss twins, recently unveiled its Gemini Earn product, enabling crypto investors to earn interest on their digital assets in the same way as fiat currencies. Gemini Exchange’s Earn product has confirmed support for the GUSD stablecoin, with owners of GUSD able to earn 7.4% annual interest. ![]()
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