Bitcoin fintech firm Castle has opened its automated bitcoin financial stack to individual users, according to Bitcoin Magazine. The company also introduced what it described as a first-of-its-kind feature for the category: users can choose any split between cash and bitcoin when receiving dividend income.
Castle said the yield on the platform comes from STRC, a perpetual preferred stock issued by Strategy that was added earlier this year. The product is currently paying a 12% annualized dividend on a semi-monthly schedule. Users can take all of the payout in cash, convert the full amount into BTC, or choose any allocation in between.
The company said many users are expected to take a middle-ground approach, using part of the distribution for everyday expenses and automatically reinvesting the remainder into bitcoin at each payout. Co-founder and CTO João Almeida said the setup is meant to address what he described as a long-standing trade-off between generating steady income and maintaining bitcoin exposure. Before this launch, Castle had only served business clients including restaurants, gyms, accounting firms and e-commerce operators. The company said repeated requests from business owners led it to open personal accounts. Castle was founded by Almeida and CEO Stephen Cole and has backing from Boost VC and Winklevoss Capital.
Castle opens the product to retail users
Bitcoin fintech company Castle has opened its automated bitcoin financial stack to individual users, according to Bitcoin Magazine, and rolled out a new feature that lets customers decide how they want dividend income paid: in cash, in bitcoin, or in any mix of the two.
Under the setup, users can receive 100% of a distribution in cash, convert 100% into BTC, or choose any percentage split between the two options.
Yield comes from STRC
Castle said the income is generated from STRC, a perpetual preferred stock issued by Strategy. The product was added to the platform earlier this year and is currently paying a 12% annualized dividend on a semi-monthly basis.
The company said many users tend to choose a blended approach, taking some cash to cover day-to-day expenses while automatically reinvesting the rest into bitcoin each time a dividend is paid.
What the company said
João Almeida, Castle's co-founder and chief technology officer, said investors have long had to choose between stable income and holding bitcoin. He said Castle's model lets users convert part of the dividend into bitcoin automatically, giving them cash flow while keeping exposure to potential long-term upside.
Shift from business clients to personal accounts
Before this move, Castle only served business customers such as restaurants, gyms, accounting firms and e-commerce companies. The firm said it decided to open individual accounts after repeated requests from business owners.
Castle was founded by Almeida and CEO Stephen Cole. The company has previously received investment from Boost VC and Winklevoss Capital.
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