LedgerX Launches Bitcoin Deposit Scheme With Returns of Upto 16% August 9, 2018 August 9, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsAugust 9, 2018 by Kelly Cromley

LedgerX Launches Bitcoin Deposit Scheme With Returns of Upto 16%

LedgerX, a CFTC-regulated firm, has launched its ‘Ledgersavings’ platform which allows investors to earn interest by depositing their Bitcoin. The interest rate depends on the maturity periods.

The company has pointed out that in some cases, client could earn interest of 16%, despite lack of appreciation in the cryptocurrency markets.

LedgerX, a cryptocurrency clearing house and options exchange, had revealed plans to introduce a Bitcoin savings program in May. Of late, the firm has seen a steep rise in trading volumes. The Bitcoin deposit scheme was announced by the firm’s CEO Paul Chou on August 3. Chou described the deposit scheme as the first major service launched by the company since the establishment of derivate trading business.

Commenting on the launch, Chou said

“I’m excited to announce the soft launch of Ledgersavings, the first major new service since we launched Ledgerx late last year. The first transaction was completed a few weeks ago and yielded the client a 15% per annum return on their Bitcoin for the next 6 months, even if Bitcoin depreciates or stays at current levels. This is a powerful use case in market conditions where Bitcoin is not appreciating.”

As Bitcoin prices are volatile, Ledgersavings offers 16% annualized rate of interest for a 2x strike call option. Investors can select a deposit period of 3-month, 6-month, or even one year. At the end of maturity period, investors will receive their pay out in US dollar. LedgerX stated that it will hold the digital assets, while the greenback will be maintained in a US bank.

“Ledgersavings takes one of the most popular trades on the Ledgerx platform, call over-writing, and puts it in terms that are more intuitive to investors who are not as familiar with the minutiae of options theory. We list contracts that have a defined maturity, an interest percentage in USD that you receive up front, and the terms of when you might exit the underlying Bitcoin. It provides an intuitively simple way to monetize an innate quality of Bitcoin — high volatility. You deposit Bitcoin, choose an interest rate, and you can get the cash today.”

LedgerX opined that investors who hold Bitcoin can receive interest by joining their scheme instead of keeping it idle. The company further pointed out that Ledgersavings is the only CFTC regulated interest-bearing account that accepts cryptocurrencies. Magnr is another trading platform that facilitates digital currency trading, while offering crypto savings program that offers interest. Additionally, Magnr Savings offers interest on funds deposited with the company.

Going forward, LedgerX plans to support Ethereum (ETH) as well.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.