Crypto payments startup Wyre is offering white-labeled savings accounts that dole out interest on crypto, the company announced Friday.
Wyre’s client list includes startups including crypto custody firm Casa, wallet provider BRD and traditional enterprises such as banks.
"Partners of Wyre are able to offer their users a crypto savings account by simply creating a new savings sub-wallet via the Wyre API," the company wrote.
The new product’s interest rates are meant to be more stable than interest rates at crypto lenders because Wyre will manage funds between MakerDAO, Compound and two centralized crypto lenders, said Jack Jia, Wyre’s vice president of business.
For the new product, Wyre is only working with crypto lenders that have lending licenses, SOC1 and SOC2 audits and work with licensed custodians.
“In the traditional markets we’re seeing a lot of instability and Treasury yields are down,” Jia said. “There are a lot more traditional financial institutions looking for yield.”
In the initial stages of the product’s development, Jia’s team had envisioned releasing the product as a smart contract but chose an application programming interface (API) instead to make it more accessible to businesses unfamiliar with crypto, he added.
Funds can be pulled out any time, and interest is accrued instantly and paid out weekly on the product, Jia said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.