Austrian Bitcoin platform 21bitcoin started paying 1.21% annual variable interest on customers’ uninvested euro balances on October 1, and users can choose to receive that interest in BTC with no conversion fee.
The company said it is the first provider in Europe to pay savings interest directly in Bitcoin. The interest applies to every euro in an account, including cash waiting for the next savings-plan purchase and funds reserved for an open limit order. There is no minimum deposit and no lock-up.
Bank partner pays the interest
“Building wealth with Bitcoin does not begin with the purchase itself, but with the euros set aside for it,” co-founder and CEO Daniel Winklhammer said.
The interest is paid by Volksbank Raiffeisenbank Bayern Mitte eG, a German bank that has owned a stake in 21bitcoin since 2023. Customer euros are held in a segregated trust account at the bank as instant-access savings.
21bitcoin said it passes the interest on in full and keeps no margin.
Positioned against high-yield crypto lending models
The company presented the product as a deliberate contrast to the high-yield promises that brought down several crypto lenders. It also said the rate is variable and that interest is subject to German withholding tax.
The launch comes after 21bitcoin introduced a zero-fee Bitcoin savings plan earlier this year.
More Bitcoin financial products planned for 2027
Last year, 21bitcoin teamed up with VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH on a European pilot project aimed at developing an institutional-grade Bitcoin-backed credit product.
Bitcoin-backed loans, insured cold storage, and multisig inheritance custody are scheduled for 2027.
Licensing and company profile
Founded in 2021, 21bitcoin holds a MiCAR licence in Austria and is authorized by Germany’s Federal Financial Supervisory Authority, or BaFin. The company reports more than 100,000 users and over €650 million in trading volume.
The story first appeared in Bitcoin Magazine and was written by Mathew Di Salvo.