Bitstamp Launches US Interest Earning Product

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The CEO of Luxembourg-based crypto exchange Bitstamp assured that their product will be different from what credit companies like BlockFi offer.

Bobby Zagotta announced thatis about to introduce a new product, Bitstamp Earn, to American investors. The product is already available to customers in different countries and allows investors to fund their exchange accounts in Ethereum (ETH) and Algorand (ALGO) and then collect rewards for staking. For its part, the exchange takes a fee for the profitability that users receive.

According to the company's CEO, profitability is not generated through lending, as in other high-interest cryptocurrency products:

"Our offer is pure and simplerate. We do not deal in lending products in the US. We do not have the authority to restrict the creation of awards. Our exchange does not move people's funds or make investments. So this is a far cry from what some other lending institutions like BlockFi have done.”

Let us remind you that the BlockFi lending platformattracted the attention of the US Securities and Exchange Commission (SEC) earlier this year. The regulator said the company's high-interest accounts were unregistered securities and ordered the company to stop offering them to American clients. After this, BlockFi paid $100 million and stopped placing cryptocurrency deposits.

Zagotta is confident that the new Bitstamp productwill allow the company to successfully develop in the United States, so the exchange has doubled the size of its staff. The number of tokens available for listing will grow, as will the number of offers that allow people to make wider use of their crypto assets, the businessman believes.

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Previously, the crypto exchange sent out a notice to its clients, warning them about tightening rules to comply with regulatory requirements.