Magnr, formerly BTC.sx – a bitcoin derivatives trading platform – has rebranded and is now offering bitcoin saving accounts with an interest rate fixed at 2.18% for a promotional period of six months.
Following this, the interest rate will be variable, dependent on trading fees generated by users on the platform. Magnr declined to reveal its trading volume but said that it had surpassed 60,000 total trades earlier this year.
When asked about the potential implications of bitcoin's price volatility on users' interest rates, Josh Blatchford, chief marketing officer at Magnr, emphasized that those saving bitcoin would likely always benefit users through positive returns.
Blatchford told CoinDesk:
"Even if the price of bitcoin falls, users are still in a better position than just keeping their funds in a wallet. Although they would most likely lose money on exchange rates, by earning extra bitcoins as the price falls, they will have limited their loses."
Additionally, Blatchford said users' interest rates will be calculated using blockchain data.
"We identify how much bitcoin is in their wallet, calculate how long they have been saving from the time-stamps and then apply our interest rate," adding, "this allows anyone to independently verify that their deposit is safe and that their interest payments are correct."
Magnr is not the first to entice consumers with bitcoin saving accounts. Delta, a Hong-Kong web service and Canada-based Delta Financial, announced the launch of traditional interest bearing bitcoin deposit accounts last summer.
At the time, the firm offered a 5% minimum effective interest rate, though it has since discontinuedsuch services.