Delta Exchange, a crypto derivatives platform, announced on Wednesday the launch of interest-bearing accounts for its customers.
Traders on the exchange can earn up to 10 percent in interest on all the exchange supported digital currencies.
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“Delta Exchange has been a market leader in bringing innovation to the crypto derivatives space, be it futures on smaller altcoins, MOVE contracts on Ethereum, or stabelcoin settled futures,” Pankaj Balani, CEO of Delta Exchange, said. “Interest-bearing accounts are a step in that same direction of development, and we expect the industry to follow suit.”
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Unlike any other decentralized finance (DeFi) platform, Delta Exchange is not offering lending services, meaning it cannot follow the borrow-lending model to hand-out interests to its clients.
Speaking to Finance Magnates, Balani clarified that the derivatives exchange would provide the interests from its marketing budget. However, it has plans to launch a lending and borrowing platform, challenging the services of firms like BlockFi and YouHolder.
“At this point in time we see this as a marketing spend but our plan is to build our own lending and borrowing markets on the platform,” Balani stated.
“We plan to have our own two-way lending and borrowing markets. Active lending and borrowing markets will drive good price discovery on futures contracts and make our futures markets more liquid. This is a first step in that direction.”
According to Delta Exchange, this move will help in increasing the adaptation of cryptocurrencies among a wider audience.
Notably, the users do not need to move their funds to any specific wallets. They will receive interests on their exchange holdings kept for trading on a daily basis, without any lock-in period.
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