Uphold, a popular trading platform with over 12 million users, is introducing U.S. dollar interest accounts that can earn an Annual Percentage Yield (APY) of up to 5%. This move, according to Uphold’s CEO Simon McLoughlin, is aimed at attracting new customers and encouraging existing users to keep more funds on the platform.
McLoughlin stated, “Our main objective is to make Uphold more appealing and gain a significant number of new customers, especially from the mass market. It also provides a secure way for people to hold dollars on the platform as it is an insured vehicle.”
Initially, the U.S. dollar interest accounts will only be available to users in the United States. These accounts offer access to FDIC insurance up to $2.5 million for deposited funds. Balances under $1,000 will earn a 2% interest rate, while balances exceeding $1,000 will earn a higher rate of 5%.
Currently, Uphold has over 2 million users in the U.S. The partnership with Atomic Brokerage enables Uphold to offer these interest accounts without funding them directly. The APY is not generated from Uphold’s balance sheet but through a program called Atomic Cash Sweep. This program allows clients’ funds to be deposited into interest-bearing accounts at various banks, where they can earn a variable interest rate and receive FDIC insurance coverage.
McLoughlin mentioned that the decision to introduce the USD interest accounts was driven by customer demand for higher yields. He stated, “Users have expressed their desire for more ways to maximize the earning potential of their assets, whether they are in crypto or fiat. We are proud to be the first major crypto trading platform to integrate a brokerage account offering interest on USD.”
In conclusion, Uphold’s new offering of interest accounts with up to 5% APY showcases their commitment to providing innovative financial solutions to their users. This move not only attracts new customers but also caters to the growing demand for higher yield opportunities in the cryptocurrency space.