As the company continues its foray into the US market, Luxembourg-based Bitstamp is set to introduce its Bitstamp Earn product to US investors.
The product, which is already available to Bitstamp’s non-US customers, is meant to be turn-key. Ethereum (ETH) and algorando (ALGO) Staking Solution. Investors fund their Bistamp accounts and then collect staking rewards. For its part, Bitstamp charges customers’ earnings.
Very Importantly, US CEO Bobby Zagotta Explains decryptThat does not generate returns through lending like other high-interest crypto accounts.
“This offering is stakes, pure and simple. We are not into a lending product in the US and like, you know, it is a protocol-driven set of rewards,” explained Zagotta decrypt, “We don’t have discretion over how these rewards are created. We’re not taking people’s funds or investing them. So it’s a far cry from what some lending companies like BlockFi have done.” Is.”
Bitstamp and Crypto Lending
New Jersey-based crypto rewards platform BlockFi and its London-based competitor Celsius, SEC. attracted the wrath of earlier this year.
The companies were ordered to stop offering their high-interest accounts to US customers after the regulator alleged that they were in fact unregistered securities.
Since then BlockFi has reached a $100 million settlement with the SEC and restructured its product offerings. In the meantime, Celsius is redesigning its product to pass muster with regulators.
Although Bitstamp has made sure to avoid offering accounts that generate yields from lending, there is more work to do with regulators. At launch, customers in Alabama, Idaho, Hawaii, Louisiana, Nevada, New Jersey and New York will not be able to participate.
That list includes several states, such as Alabama and New Jersey, which have been critical of BlockFi and Celsius.
Zagotta said he is confident that Bitstamp’s EARN product will have room to grow in the states. This year is going to be a big one for the company’s US team.
“We are in building mode. we have doubled our [U.S.] Staff and we have relayed the product roadmap,” Zagotta said. “And so there will be more announcements, both in the form of tokens available for listing in the US, but then other earnings-like offerings that allow people to do more with their assets.” enables.”
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