Crypto custodian firm Gemini announced today the launch of its interest-earning program, Gemini Earn, which enables customers to earn up to 7.4 percent APY. The program will be available in all 50 states and will let users buy, spend, store and earn interest on more than 26 cryptocurrencies under one platform.
Customers will be able to purchase and transfer their crypto assets onto Gemini Earn to start earning interest for any given period of time. They will not require a minimum balance to get started and they will also have the opportunity to redeem their crypto at any time with zero transfer and redeeming fees.
“Today’s investors know that a smart, diverse portfolio includes crypto — it’s an investment in their future selves,” said Tyler Winklevoss, CEO of Gemini. “We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade.”
The launch comes in tandem with the recent debut of the Gemini Credit Card which offers a cryptocurrency rewards program that allows users to earn back 3 percent in bitcoin or other cryptocurrencies on every purchase. The credit offering was launched in association with Gemini’s newly acquired startup, Blockrize.
Both offerings align with Gemini’s product strategy of mainstreaming and normalizing the use of cryptocurrency through traditional financial products such as interest earning platforms and credit cards.
“We want to make it easy for any cryptocurrency investor to stay long-term in the asset class, whether they have been investing in cryptocurrency with us since we launched, or are completely new to the asset class,” said Noah Perlman, Gemini’s chief operating officer. “We believe it's important to provide our customers the option to invest and earn interest all within the Gemini ecosystem.”
Gemini Earn will be available to a limited number of Gemini customers as of today and will be accessible to all Gemini customers in the coming weeks. The offering will encompass all crypto assets supported by Gemini. In the coming months, the company plans to expand Gemini Earn to bear interest on the Gemini dollar, Gemini’s regulated stablecoin with a 1:1 peg to the U.S. dollar.
“Not all crypto platforms were created equally. We believe the quality of our product -- from the 26 cryptos which you can earn interest on and trade on our platform, to the range of interest that we offer up to 7.4% APY -- coupled with the holistic experience we provide on the Gemini platform make Gemini Earn stand out from other offerings,” said Perlman.
In light of last year’s crypto boom, cryptocurrency has been actively gripping the public imagination as major firms continue to invest billions into digital currencies. In the beginning of 2021, JP Morgan reported that bitcoin could rise up to $146,000 in the long term as it competes with gold.
On Friday, bitcoin rose 20 percent higher after Elon Musk changed his Twitter bio to #bitcoin. Earlier today Coindesk reported how traders have switched gears from GameStop to leapfrogging onto centralized and decentralized cryptocurrency exchanges after recent restrictions by trading firms such as Robinhood.
“Just as the stock market became more mainstream after mutual funds were introduced in the late 1970's, we see diversification of crypto becoming a big market beyond 2021,” said Boston Trading’s chief financial officer, Jeremy Britton.
According to Britton, this could lead to a plethora of many new crypto mutual funds or crypto ETFs in addition to companies which may offer Individually Managed Accounts or crypto portfolio management services.