Uphold, a trading platform with approximately 12 million users, is launching interest accounts in US dollars that can earn an APY of up to 5%.
Company CEO Simon McLoughlin said the move is aimed at attracting new customers and encouraging users to hold more capital on the platform.
“Our main goal is to make Uphold attractive and acquire a lot of new customers in the mass market,” McLoughlin told The Block. “Are [also] just a more secure way for people to hold dollars on the platform. It is an insured vehicle.”
Initially, the offering will only be available to U.S. users, and the accounts “provide access to FDIC insurance up to $2.5 million for participating funds,” the company said in a statement. Balances under $1,000 earn 2% interest, while balances over $1,000 earn 5%.
McLoughlin said Uphold currently has more than 2 million users in the US.
Uphold offers interest accounts that pay up to 5% APY and is powered by a partnership with Atomic Brokerage. “Were doesn’t fund it,” he says McLoughlin. “TThe return does not come from our balance sheet.”
Instead, Uphold plans to provide the generous APY through a program called Atomic Cash Sweep. “Through Cash Sweep, customers’ funds are deposited into an interest-bearing deposit account at one or more banks, where the funds earn a variable interest rate and qualify for FDIC insurance coverage,” Uphold said.
McLoughlin said Uphold is rolling out the new USD interest accounts after customers overwhelmingly showed interest in earning higher returns. “Users tell us they want more ways to maximize the profit potential of their assets, whether that’s crypto or fiat,” says McLoughlin. “Now we are the first major crypto trading platform to include a brokerage account that offers interest on USD.”
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