Uphold, a trading platform with about 12 million users, is launching U.S. dollar interest accounts that can earn an APY of up to 5%.
The company’s CEO Simon McLoughlin said the move is geared towards attracting new customers and incentivizing users to hold more capital on the platform.
“Our main goal is just to make Uphold attractive and acquire a ton of new customers, from the mass market,” McLoughlin told The Block. “It’s [also] just a safer way for people to hold dollars on the platform. It’s an insured vehicle.”
Initially, the offering is only available to U.S. users, and the accounts “provide access to FDIC insurance up to $2.5 million for participating funds,” the company said in a statement. Balances under $1,000 will earn 2% interest while balances that exceed $1,000 earn 5%.
Uphold said the interest accounts offering up to 5% APY are made possible through a partnership with Atomic Brokerage.
“Users tell us that they want more ways to maximize the earning potential of their assets, whether that is crypto or fiat,” said McLoughlin. “Now we are the first major crypto trading platform to embed a brokerage account offering interest on USD.”
McLoughlin said Uphold has over 2 million users in the U.S.
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About Author
RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master’s degree in Digital Sociology.
