NM, read the terms (monthly payouts). Next question is the bitcoin interest calculated daily at the spot BTC price or at the monthly payout date?

Daily for the calculation yes.

Holy hell this is amazing! Great stuff River team.

Can I move the cash on demand or is there a lag?

Brilliant idea. Any way to lock in a CD for long term or does the interest rate float?

You take my cash, buy TBills at 4.8% and earn 1% risk free. I can just buy TBills myself Nice try 😂

I’m curious, what is River’s incentive for doing this?

Or I can get higher interest rates from an actual bank and just buy Bitcoin instead. I don’t understand this product.

More client relations!

We're not earning 1% on this product. We don’t receive the same interest rates as tradfi on large dollar balances.

Instead of buying TBills, you are just parking it in some banks? So I have to 1. Trust you not to run away with the fiat 2. Trust your bank not to go bankrupt or seize the fiat 3. Earn less than what I can get by buying TBills myself You need to rethink this 😂

If you DCA there you get this on the cash you have to deposit for DCA anyway

T Bill rates are decreasing rapidly and likely to continue to do so. However you are correct there is a spread you can potentially capture. The possible pitfall of that strategy is you likely have to wait at least 3-5 business days in ACH transfers and if there’s a BTC price move during that time you could miss it. But even that depends on when the TBill redeems versus when river pays our interest.

Big fan!

Think ur missing the idea of convenience for most people. If the extra 1% is worth the effort for you then more power to ya tho.

Also forgot to mention you don’t earn interest while your money is moving in ACH transfers. So if we assume 4 days(maybe low if you hit any weekends) for each transfer on a 1 month T bill: 4 days from your bank to broker, 4 days from broker back to your bank when TBill redeems, and then 4 days to River for a total of 12 days in transit. That means despite the 1 month TBill rate being around 4.6% currently, out of a 45 day period potentially 1/3 of that time you are earning no interest while your money is moving. So your effective rate on that TBill is much lower. *this is highly dependent on your bank and broker and could be significantly different

Is this going to allow the ability to lend out dollars for people putting their BTC up for collateral?

Uh oh. Yield farming. Run away. 🏃

Saylor mentions getting Bitcoin yield and all the ops lose their minds. River does it and they love it lol

Buh Buh Buh, paid in BTC 😂 Clown world for sure.

I believe a key factor is about friction and opportunity cost. Its basically reducing friction + additional DCA in my opinion. You get higher interest rates from certain banking products, sure, but what is the payout frequency? Are those in money market funds or short term treasuries or something with a longer payout? If the payout takes longer than a month, are you going to manually take out the dividends every, lets say, 3 months, to buy bitcoin? What if bitcoin does a 30-50% increase in that period? Again. Up to users. Some users will love it. Some may not see the point. Its totally fine. I see it as value add for users who want to make better use of their cash thats allocated to bitcoin purchasing anyways. @River curious what were the feedback / learnings from existing customers that led to this development.

Got it, so the goal is to incentivize user growth? (I say all this as a satisfied customer btw, just looking for clarity).

There is no yield being earned on bitcoin. You earn interest on cash deposits, and that interest is then converted to bitcoin. It's quite similar to traditional offerings besides the last component.

don´t store your BTC on that platform ☣️

Euros, too?

🤬

@River love the idea of this. Can keep my emergency fiat there and earn Bitcoin off it. Any chance of allowing weekly auto deposit similar to auto buys?