“Building wealth with Bitcoin does not begin with the purchase itself, but with the euros set aside for it,” said co-founder and CEO Daniel Winklhammer.
The money is paid by Volksbank Raiffeisenbank Bayern Mitte eG, a German bank that has owned a stake in 21bitcoin since 2023.
Customer euros sit in a segregated trust account at the bank as instant-access savings. 21bitcoin says it passes the interest on in full and keeps no margin. The company is pitching this as a deliberate contrast to the high-yield promises that brought down several crypto lenders.
The rate is variable, and interest is subject to German withholding tax.
The launch follows 21bitcoin’s zero-fee Bitcoin savings plan, introduced earlier this year. The company last year teamed up with VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH to launch a pioneering European pilot project in hopes to develop an institutional-grade Bitcoin-backed credit product.
Bitcoin-backed loans, insured cold storage, and multisig inheritance custody are slated for 2027.
Founded in 2021, 21bitcoin holds a MiCAR licence in Austria and is authorized by Germany’s BaFin. It reports more than 100,000 users and over €650 million in trading volume.
This post 21bitcoin Now Pays Interest on Idle Euros, Payable in $BTC first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.
