Crypto investment app Abra now offers interest-bearing accounts
July 28, 2020, 9:30AM EDT
1 min read
Crypto investment app provider Abra is now offering interest-bearing accounts, letting users earn a yield on their crypto deposits.
Abra said users would receive up to 9% interest rate per annum, compounded daily. The currently supported coins for the interest offering are bitcoin (BTC) and ether (ETH), as well as stablecoins Tether (USDT), USD Coin (USDC), Paxos Standard (PAX) and True USD (TUSD).
The current interest rates offered are: BTC 4.1%, ETH 4% and the four stablecoins 9%, Abra's VP of growth, Lomesh Dutta, told The Block. He added that the interest rates would be reviewed and adjusted weekly, based on the demand from institutional borrowers for the asset under consideration.
The current interest rates on stablecoins are "significantly better than any bank account can offer," said Dutta. Abra has over a million users, and the U.S., the Philippines, and the U.K. are the top three markets, said Dutta.
Abra has teamed up with crypto custodian Prime Trust for the initiative. It means every Abra user would have to verify their identity with Prime Trust via the Abra app before opting for interest accounts.
The news comes two weeks after Abra settled charges with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over off-exchange digital asset swaps and registration violations.
Founded in 2014, California-based Abra allows users to trade and hold several cryptocurrencies. The firm is backed by notable investors, including American Express Ventures and Foxconn Technology Group, and has raised over $35 million to date.
Update: This story has been updated to include comments from Lomesh Dutta, VP of growth at Abra.