Luxembourg-based crypto exchange Bitstamp is set to introduce its Bitstamp Earn product to American investors, pushing into the US market. Further, the Bitstamp Earn product presents a staking solution for two cryptocurrencies, Ethereum (ETH) and Algorand (ALGO).
The Bitstamp Earn Product
The Bitstamp Earn product is already available to its non-US customers. To participate, users need to fund their Bitstamp account and start collecting their staking rewards.
However, Bitstamp charges a fee on the yield that the customers earn. Moreover, in the coming months, Bitstamp plans to roll out support for other staking assets apart from Ethereum and Algorand.
Meanwhile, Bitstamp's US CEO Bobby Zagotta pointed out that many Americans are considering delaying retirement due to record-high inflation. Also, he added that more people have started to look beyond the traditional ecosystem.
Zagotta cited a company survey that showed 76% of retail investors are excited for crypto products to reach the mainstream. Also, the survey found that 80% of institutional investors anticipate crypto overtaking traditional financial products within a decade.
Very importantly, Zagotta clarified that the yields are not generated through lending, unlike other high-interest crypto accounts.
"This offering is staking, pure and simple. We're not into a lending product in the US and as such, you know, it's a protocol-driven set of rewards," Zagotta told Decrypt. "We don't have discretion over how those rewards are created. We're not moving people's funds or making investments. So it's very, very far removed from what some of the lending companies like BlockFi have done."
Bitstamp And Crypto Lending
Following this year's crypto market crash, the regulators have gone tough on the crypto lending platforms. Earlier this year, crypto lending platforms BlockFi and Celsius Network drew the ire of the US Securities and Exchange Commission.
In fact, they were ordered to stop offering their high-interest accounts to US customers, alleging them as unregistered securities. Furthermore, BlockFi reached a $100 million settlement with the SEC, restructuring its product offering. Meanwhile, Celsius is redesigning its product to comply with regulators, especially the SEC.
While Bitstamp is not offering accounts that generate a yield from lending, it still has more work with the regulators.
Also, at launch, the Bitstamp Earn product would not be available for customers in Alabama, Idaho, Hawaii, Louisiana, Nevada, New Jersey, and New York. The list includes several states, like Alabama and New Jersey, that were critical of BlockFi and Celsius Network.
But Zagotta says he is confident that the Bitstamp Earn product will have room to grow in the United States. In fact, this year is set to be a big year for Bitstamp's US team.
"We've been in building mode. We've doubled our staff and we have kind of relayed out the product roadmap," Zagotta added. "And so there will be more announcements, both in the form of tokens available for listing in the US, but then also other Earn-like offerings that will enable people to do more with their assets."