Celsius Network, a platform for Cryptocurrency lending and borrowing announces partnerships with two crypto-wallets Monarch and Infinito, in an attempt to take the banking concept of earning interest to the crypto community. These partnerships are being touted as the crypto community’s way of democratizing their financial structure and ensuring that it works in the best interests of its customers; which is where the banking industry has repeatedly failed its customers. Banks, acting as middlemen, offer interests rates that rarely cross 1% but charge a whopping 35% interest when lending out deposits through credit cards.
However, until today, this issue has also plagued the crypto service providers. These crypto service providers also offer significantly low returns on their customers’ investments, taking a leaf out of the WallStreet’s playbook.
Celsius aims to change this, by offering crypto holders a 3-7% interest on their savings account that’s doled out weekly, making it profitable way to passively earn from owning Crypto assets. Unlike existing options in banking or crypto-wallets, there is no lockup period; Celsius allows its users to access and withdraw funds at any time. In a clear exposition of its democratized process, Celsius pays 80% of its revenue to its depositors and gives them full control over their assets.
By integrating with Monarch & Infinito, Celsius ensures a geographically wider client-base along with providing efficient services by leveraging Infinito App Square’s smart contract blockchains. While these partnerships represent Celsius’ first foray into wallet integration in 2019, it aims to ensure that its clients have an array of options for maximizing their interests from crypto assets through additional wallet collaborations.
“Many crypto services lend out their clients’ funds without giving proper notification and distribute significantly lower returns on those funds. This sounds much more like a page out of Wall Street’s playbook than that of a financial system founded on the interest of the people, as the crypto community claims to be. We hope these partnerships set a new industry precedent in digital finance. High yield interest-bearing accounts should be the expectation; not the exception,” said Alex Mashinsky, CEO of Celsius Network. “This is what all banks should be providing their customers, if not more. If we band together as a community of HODLers, we can set the tone and demand higher rates. And that, in turn, will stabilize the market.”
By making high-interest yielding savings account an expectation rather than an exception, Celsius aims to set a new precedent in the world of digital finance. The company had rolled out its mobile App called CelPay a few months back.
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