Aussie exchange Swyftx offers crypto yield with no lock-in

The Swyftx exchange will begin offering interest-bearing returns on a wide range of cryptocurrency assets – the first Australian-powered crypto exchange to do so.

Swyftx’s new product, called Earn, offers residents of Australia and New Zealand the opportunity to earn interest on 21 different digital assets, including large-cap cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA). ) and stablecoins like Tether (USDT) and USD Coin (USDC).

Swyftx Chief Executive Officer Ryan Parsons said the exchange’s Earn feature is one of the most competitive in the crypto space, as the Brisbane-based company will allow its clients to withdraw their assets from Earn at any time, with no exit fees, lock-ups or Minimum Notice Period.

Parsons added that this fee-free flexibility is the key differentiator between its Earn product and similar products offered by larger, multinational exchanges like Binance and Crypto.com.

“Very few global exchanges offer crypto users the level of interest rates we have without also having lock-up periods.”

Swyftx explained that the level of yield that can be offered to lenders ultimately depends on the volatility of the underlying asset. Large-cap stablecoins like USDC and USDT are expected to carry interest rates up to 6.7%, while major crypto assets like BTC and ETH will offer up to 5.1%. Slightly riskier assets like Polkadot (DOT) offer returns of up to 12.7%, while DeFi token KAVA is said to offer up to 25.8%.

Earn also provides yields on TrueAUD (TAUD), an Australian dollar-pegged stablecoin. Users can expect to earn up to 5.3% APY on TAUD deposits.

Swyftx clarified that the tariffs offered by Earn will be variable, with Swyftx allowing a seven-day notice period for any changes.

Parsons said he expects Earn to appeal to a large number of Australian investors. Currently, around 28.8% of all Australian adults own or have owned cryptocurrencies, according to a 2021 survey of the Independent Reserve’s Cryptocurrency Index.

“We anticipate that you will see many more Australians using crypto wealth services as they become more familiar with digital assets,” Parsons added.

“We look at significant areas of traditional finance and think, ‘You know what, we can beat you.’

While Swyftx may be the first Australian crypto exchange to offer returns on cryptocurrency deposits, other fintech startups have begun offering Australian consumers similar high-yield products. On March 17, Australian fintech startup Block Earner began offering direct access to the world of decentralized finance (DeFi) to the mainstream.

In conversation with coin telegraphJordan Momtazi, co-founder of Block Earner, said the current economic climate in Australia makes savings-return products quite attractive, given that it is virtually impossible to achieve similar returns using methods used by traditional financial institutions.

Related: Swyftx signs major sponsorship deal with Aussie National Rugby League

The regulatory situation in Australia when it comes to high-yield crypto deposits is far more relaxed than in the United States. The SEC continues its tough stance on crypto lending and related interest-bearing digital assets.

Late Jan. Earlier this year, the SEC launched an investigation into high-yield digital asset lending products offered by Gemini, Celsius, and Voyager Digital. Then, on Feb. 14, the SEC slapped a $100 million fine on crypto lending firm BlockFi for failing to register high-yield interest accounts that the agency considered securities.