All eighty,000 users of German language neobank Bitwala can now buy, agree and earn interest on Bitcoin (BTC) in their banking company accounts thanks to a new partnership with cryptocurrency lending platform Celsius Network.

According to Defiprime, Bitwala is the commencement archetype fiat bank to offer interest for holding Bitcoin in an account, with 3 other decentralized finance apps offering similar products. While the DeFi products accept higher rates, up to 8.half-dozen% per annum, Bitwala is more regulated and offers fiat and cryptocurrency services in 32 European countries under license from leading German banking concern SolarisBank AG.

Users tin buy as little as 30 euro worth of Bitcoin and hold information technology in a free Bitcoin Interest Account, receiving interest payouts weekly. The Bitcoin in the accounts is lent out through the Celsius Network to "trusted partners." Funds tin be converted back to euros immediately.

Earning interest with Bitcoin

In a statement, Bitwala CEO Ben Jones referred to the Bitcoin halving equally a reminder that "state coin [fiat] cannot exist inflated eternally":

"At this time, more and more people trust in Bitcoin. Bitwala is the everyday bridge to it. We are now partnering with Celsius Network, the world's leading provider of crypto loans, then that our customers can leverage Bitcoin holdings wherever they are."

Neobanks struggle to obtain licences

Over the terminal four years, neobank startups take emerged in an attempt to span the fiat and crypto finance industries, simply few have obtained total banking licenses, and none offering Bitcoin investment accounts.

Revolut received its full banking license in Europe in late 2022, merely has struggled to receive an Australian cyberbanking license. One-time Barclays executive Mark Hipperson has launched the partially licensed Starling Bank as a crypto-friendly neobank.