California-based digital asset Individual Retirement Account (IRA) company, Bitcoin IRA, is launching a new platform to enable clients to earn interest in both digital and fiat currency.
As per a Monday press release, the United States Internal Revenue Service (IRS) approved company, reached a partnership with the digital asset trading and lending firm, Genesis, to introduce the service, which also provides tax benefits for retirement savings.
The interest-earning crypto and cash-lending program is scheduled to go live in November, with Bitcoin IRA adding that the program will initially be opened to a limited number of participants and also delivered on a first-come, first-served basis.
Additionally, the annual interest rates from the program could vary based on the lending coin and term length.
Sharing his thoughts on the soon-to-be-launched service, Chris Kline, the COO, and co-founder of Bitcoin IRA identified interest-earning accounts as an exciting revolution in decentralized finance. He added:
Borrowing and lending using cryptocurrencies and cash are providing new and safe opportunities for our clients to maximize the growth of their retirement accounts. Interest earned by a client can offset trading fees or custodial holding fees, essentially creating a FREE account making these fees a thing of the past.
Also notable is the fact that clients are now able to capitalize on interest yields, which boost their IRA account value, using a service that was previously not available to long-term crypto holders.
Today’s announcement meanwhile is coming after Bitcoin IRA launched a cryptocurrency swap last month. Clients could use the service to swap any cryptocurrency directly from Bitcoin IRA’s proprietary self-trading platform rather than converting their holdings to fiat currency first.
Bitcoin IRA Accounts Becoming a Norm
While the new service being launched by Bitcoin IRA is set to promote Bitcoin as an investment vehicle for individual retirement account owners, it is interesting to note that bitcoin investment is becoming a norm for that class of investors.
For instance, Coinfomania reported in August that the Australian Tax Office (ATO) issued letters to Self Managed Super Funds (SMSFs) owners for investing 90% of their retirement funds in one particular asset, which is considered illegal in the country.
SMSFs are individuals who take control of their retirement fund investment decisions instead of outsourcing the management to professionals, and they are choosing to invest in cryptocurrency.
Piggy Bank Image via Pixabay
Affiliate: Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!