Austrian Bitcoin platform 21bitcoin will pay an annual interest rate of 1.21% on customers' unused EUR balances, starting today, with the option to receive interest directly in BTC without conversion fees.
The company says this is Europe's first service to pay savings interest directly in Bitcoin.
The company states that this interest covers every euro in the account, including cash waiting to be used for the next savings plan purchase or reserved for unfilled limit orders. There is no minimum deposit requirement and no lock-up period.
Co-founder and CEO Daniel Winklhammer said, "Accumulating wealth with Bitcoin doesn't start with the purchase itself, but with the euros set aside for the purchase."
This payment was made by the German bank Volksbank Raiffeisenbank Bayern Mitte eG, which has held shares in 21bitcoin since 2023.
The client's euros are held in an isolated trust account at the bank in the form of instant-access savings. 21bitcoin states that it will pass on the full interest to clients without retaining any spread. The company positions this practice as a stark contrast to the high-yield promises that led to the collapse of several crypto lending platforms.
This interest rate is variable, and interest is subject to German withholding tax.
This launch follows 21bitcoin’s zero-fee Bitcoin savings plan introduced earlier this year. Last year, the company also partnered with VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH to launch an innovative European pilot project aimed at developing institutional-grade Bitcoin-backed credit products.
The company plans to launch Bitcoin-backed loans, insured cold storage, and multi-signature inheritance custody services in 2027.
21bitcoin, founded in 2021, holds a MiCAR license in Austria and is authorized by Germany’s BaFin. The company states that it has over 100,000 users and more than €650 million in trading volume.