It has been reported that funds deposited from customers who opt to use Bitwala’s Bitcoin Interest Account will be loaned to institutional borrowers through Celsius by earning weekly interest on their Bitcoin in the form of BTC.
However, the firm frames DeFi as “a new way to generate wealth” by highlighting the opportunity for passive income to be generated from crypto holdings.
It has been analyzed that users can deposit from $12 worth of Bitcoin into Bitwala’s interest accounts, and are able to add and withdraw funds at any time, as only network fees are incurred through using the account, with investments and withdrawals processed without cost to the user.
Bitwala has integrated Celsius to offer weekly interest on Bitcoin holdings https://t.co/Vh4KJvLTgK — Cointelegraph (@Cointelegraph) May 17, 2020
Likewise, Celsius has enabled over $6.2 billion since launching during June 2018, with the firm providing loans to a network of over 150 institutional borrowers. However, Celsius takes 20% of the interest earned on user funds by paying the remaining 80% directly to users.
As per the report, the returns generated by the app change slightly each week in response to market dynamics.
Dear Celsians, meet @Bitwala – the latest Partnership of @CelsiusNetwork ‼️ – introducing their 🔥🔥 #Bitcoin Interest Account 🔥🔥#UnBankYourself @Mashinsky@coinkit_ mon 250 1500 #BTC https://t.co/dqX3Upry7N — Celsians (@Celsians) May 13, 2020
Alex Mashinsky, the Founder of Celsius, stated that the DeFi platform was conceived “to create something that will bring more utility and create less volatility” and drive widespread adoption.
He also argued that offering easy access to interest income unlocks a multi-billion person market for crypto.
Thus, Mashinsky concluded:
“Seven billion people want to earn yield and want to earn interest. If you could just do that, and do it ten, twenty, fifty times better than your bank, and you build trust — that’s how you win [people] over.”