As Swyftx's interest rate offering goes live, crypto is poised for a "new era of innovation."
With an interest rate offer on popular digital assets like Bitcoin and Ethereum, an Australian crypto exchange is setting new territory.
Swyftx, based in Brisbane, announced on Thursday that it would be the first locally owned cryptocurrency exchange to give consumers in Australia and New Zealand the chance to earn income on a variety of digital assets and stablecoins with no costs.
Earn, a new product from the company, transforms dollars into a range of digital currencies, including stablecoins, which are designed to avoid volatility by monitoring the value of fiat currencies.
The Earn feature will support 21 different digital assets, including Bitcoin, Ethereum, Cardano, Solana, USDT, and USDC, with total inflows to each coin capped.
Swyftx predicted that different digital assets would generate varied amounts of demand based on their underlying fundamentals, such as price volatility.
USDC and USDT, two popular stablecoins, will earn interest rates of up to 6.7 percent, while Bitcoin and Ethereum will earn up to 5.1 percent.
Polkadot, a more volatile asset, will fetch a rate of up to 12.7 percent.
Swyftx is also giving up to 5.3 percent for TAUD or TrueAUD, an Australian stablecoin, and up to 25.8% for KAVA.
Earn is a "at call" loan between individual consumers and Swyftx, which means customers can withdraw funds from Earn at any moment and without incurring any exit costs or notice period.
Earn, according to the company, stands out from similar goods from major corporations like Crypto.com and Binance.
The Earn feature, however, is not covered by the Federal Government's Financial Claim Scheme, which provides deposit holders with protection.
Earn's rates are likewise flexible, with any adjustments requiring a seven-day notification period.
Earn, according to Swyftx CEO Ryan Parsons, is expected to usher in a period of continuous crypto innovation across Australian financial markets.
"You've got a lot of me-too-type solutions in the market right now, which makes it far more difficult for Australians to diversify their portfolios and achieve their goals," he added.
"We're looking at a lot of traditional finance and saying, 'You know what, we can do better than you.”
"We're happy to be able to provide a materially different choice to all Australians, not just current crypto users," says the company.
Swyftx, launched in 2018 by high school friends Alex Harper and Angus Goldman, now has 600,000 customers nationwide, up from 220,000 this time last year. Swyftx Earn is intended to draw "a broad cross section" of Australians, according to Mr Parsons.
About a quarter of the country's adults possess or have owned cryptocurrencies.
Mr Parsons stated, "We see Earn as complementing existing possibilities in the retail financial sector."
"It's a much-needed diversification option, and we've worked hard to ensure it's secure, flexible, and transparent enough to appeal to all Australians and risk appetites."
Swyftx, an easy-to-use cryptocurrency trading app for Australians
Swyftx is a crypto app that is popular among Australian retail clients. It is available for both iOS and Android devices.
Swyftx's app and web trading platform are both easy to use, so this service is a fantastic choice if you've never bought or sold cryptocurrencies before.
Swyftx gives you access to over 290 different digital currencies. As a result, Swyftx is ideal for those of you who want to diversify your portfolio. The Swyftx app also appeals to us because of its modest charge structure. Many supported payment methods, for example, allow you to deposit and withdraw Australian dollars with no transaction costs.
Commissions are only 0.6 percent each slide, with reduced rates available if you deal in bigger volumes. This starts at just 0.41 percent in terms of spreads. Swyftx supports PayID, POLi, and bank transfers, making it simple to deposit funds into your account. You can also fill your account using a debit or credit card right now.
However, because this payment option is processed by a third party, there will be a 4% cost. Swyftx includes a number of useful features that will appeal to long-term investors. Staking tools, for example, allow you to earn interest on your idle tokens. You can also set up recurring orders, which are useful for averaging costs.