Delta Exchange to Launch Interest-Bearing Accounts for Traders

Crypto derivatives platform Delta Exchange announced interest-bearing accounts for its customers on Wednesday. The accounts will bring up to 10% interest for the customers on digital currencies supported on the exchange.

Lucrative opportunity for traders

Delta Exchange CEO Pankaj Balani commented on the new offering and said,

“Delta Exchange has been a market leader in bringing innovation to the crypto derivatives space, be it futures on smaller altcoins, MOVE contracts on Ethereum, or stablecoin settled futures. Interest-bearing accounts are a step in that same direction of development, and we expect the industry to follow suit.”

Delta is not a traditional decentralized finance (DeFi) platform. It does not engage in lending services i.e. it does not have a borrow-lending model that provides interests to the clients. Balani said that the exchange will be providing interest to its clients via its marketing budget. It aims to offer a lending and borrowing platform eventually, like its peers YouHolder and BlockFi. He said that the company views the interests of currencies as marketing spend for now.

What does the firm plan?

Delta Exchange will be launching a lending and borrowing service to its clients in due time. Balani said that two-way lending and borrowing with help drive better price discovery on the futures contracts. It would also bring more liquidity to their futures market. The exchange hopes that this move would also help in increasing crypto adoption on a wider scale.

For now, the users of the exchange do not need to create separate wallets receiving interest on their digital currencies. Delta Exchange will be providing them interest on the exchange holdings kept on the platform for trading. The interest will be provided on a daily basis. Moreover, users do not have to face a lock-in period. The customers can keep trading their cryptocurrencies as usual.