Despite some recent uncertainty in the traditional financial markets prompted by the coronavirus epidemic, it’s still a great time for the U.K. cryptocurrency scene.
The new launch of CryptoAM.io, and our inaugural feature article, coincides with a mobile app refresh and new products by Mode, an innovative start-up in the British blockchain industry and one of the leading mobile banking apps to buy, store, and grow Bitcoin in the UK.
The London-based digital asset banking solution, Mode has recently announced that they’re rolling out a brand new interest-generating product for Bitcoin, alongside a new app redesign for 2020, which promises to bring a new dimension to digital asset banking.
Interest-generating Bitcoin accounts
Mode’s new interest-generating accounts, dubbed the ‘Bitcoin Jar’, lets Bitcoin holders earn interest on their funds, unlocking the full potential of their digital assets. Instead of holding Bitcoin in a wallet or on an exchange and waiting for the value to rise, Bitcoin Jar users can earn actual interest on their Bitcoin holdings.
The Mode Bitcoin Jar aims to give people access to higher-interest generating products than they are accustomed to, starting with 5% APY interest during the first eight weeks, with no lock-up periods . After this period, the APY will become variable and will be subject to change depending on market conditions.
Their new Bitcoin interest-generating Jar comes at a time when traditional banking accounts are operating in a negative interest environment, with interest rates at historic lows. This makes Mode’s Bitcoin Jar one of the most flexible and high-yielding products available in the Bitcoin market today.
“We’re excited to offer our new Bitcoin Jar feature. Decentralised finance products are becoming increasingly sophisticated, rivalling that of traditional banking and savings products.” Says Janis Legler, Head of Product and Partnerships at Mode. “We see a strong future for interest-bearing accounts for digital assets, which is why we’ve made it our aim to make them available globally, to every kind of investor and traditional banking app user.”
How does Mode generate interest?
Mode generates interest for Bitcoin holders by working with institutional lending providers, passing this interest on to Bitcoin Jar account holders.
Bitcoin Jar users are free to withdraw their funds at any time, with no lock-in periods and no fees on deposits or withdrawals. Interest generated with a Bitcoin Jar account is accrued every day, compounded, and paid out each week.
The Mode team expects the Bitcoin Jar will appeal to crypto investors who have bought Bitcoin as a long-term hold or store of wealth, who are also looking for ways to grow their holdings without trading, or those who want to earn interest on their assets.
Mode also charges some of the lowest fees for buying Bitcoin in the UK, at just 0.99%, which makes the mobile banking app highly attractive to those looking to buy, store, and grow their Bitcoin holdings.
Mode’s existing iOS app, which went live in Q1 2020, has also undergone a major redesign to complement their new product launch; which Mode say is part of their commitment to making Bitcoin and digital assets inclusive and accessible to everyone.