One of Australia’s largest cryptocurrency exchanges, Swyftx has announced its intention to break into mainstream financial markets with the launch of one of the world’s most competitive interest rate offerings.
Swyftx is the first Australian cryptocurrency exchange to launch an ‘at call’ Earn feature that offers interest on assets like Bitcoin, Ethereum and USDT without any lock-in periods.
Earn services work by flipping the traditional lending model on its head, with customers converting fiat into crypto and then lending those digital assets back to the platform in return for interest.
Swyftx Chief Executive Officer, Ryan Parsons, said the exchange’s Earn feature was one of the most competitive in crypto:
“Australia has among the highest levels of crypto adoption in the world and you’re going to see this translate into service offerings that are hyper-competitive,” said Parsons.
“Very few global exchanges are offering crypto users the level of interest rates that we are without also having lock-in periods.
Over the next two to five years, we expect Earn and other crypto innovations to totally transform the way Australians and other nationalities choose to diversify and manage their wealth.
Ryan Parsons, Chief Executive Officer, Swyftx
Australian-owned Swyftx was founded in 2018 by high-school friends Alex Harper (then 27) and Angus Goldman (also 27). It is the country’s top-rated cryptocurrency exchange, with around 600,000 customers across the country, up from 220,000 customers this time last year.
Its customers will be able to earn interest, fee-free, by converting fiat into a variety of digital assets, including Bitcoin, Ethereum, and stablecoins like USDC and TAUD (True AUD).
Different digital assets will attract different levels of interest that reflect the underlying fundamentals of each individual asset, including price volatility. Popular stablecoins USDC and USDT will attract interest rates of up to 6.7%, with other assets like Bitcoin and Ethereum attracting up to 5.1%.
Parsons said he expected Swyftx Earn to appeal to a broad cross-section of Australians. Around 25% of adults in the country own, or have owned cryptocurrency in the past.
“Our expectation is that you’ll start to see many more Aussies using crypto wealth services as they become more familiar with digital assets,” said Parsons.
“We’re looking at significant pockets of traditional finance and thinking, ‘you know what, we can out-compete you’.”
Swyftx is offering consumers the ability to earn up to 5.3% in interest on the Australian stablecoin TAUD, paid out in TAUD. This means users can generate returns while minimising the typical volatility found in crypto. There will be zero fees for buying, selling and earning on TAUD.
Investors will be able to withdraw funds from Earn at any time, with no exit fees or notice period. However, the feature is not covered by the Australian Government’s Financial Claim Scheme and rates are variable.
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