Huobi Rolls Out Interest-Earning BTC & USDT Savings Products as Alternatives to Yield Farming
Huobi, one of the leading crypto derivatives exchanges globally, is expanding its footprint in the Centralized Finance (CeFi) space with a savings product that will allow its clients to earn interest on BTC or USDT. The Singapore-domiciled exchange launched this product on September 7 as it prepares to scale its share of the growing crypto investment space.
According to the company’s Global Markets VP, Ciara Sun, the new savings product by Huobi targets retail clients whose preference is a more stable earning as opposed to volatile DeFi projects. Speaking to Coindesk, Sun noted that the more significant percentage of the exchange’s clientele are not day traders hence a value proposition in less risky crypto portfolios,
“By offering this saving product in addition to trading, (users) can get stable and flexible income as an alternative use of their crypto assets.”
Sun was keen to highlight further that this milestone will also boost the exchange’s valuation metrics. In her opinion, prevalent valuation metrics such as an exchange volumes can be easily manipulated in comparison to Assets Under Management (AUM) on-chain metrics.
The Huobi savings product is set to pay an annual yield of 8% and 3.5% on USDT and Bitcoin holdings, respectively. Its deposit limit has been set at 3,000 Tethers or similar value in BTC. To incentivize new prospects, Huobi is currently offering an 88% APY for the premier launch week of its savings product.
While the annualized returns set on Huobi’s savings do not match the lucrative DeFi earnings, the figure is much more than what most local banks would offer on their savings account. Sun also noted that the initiative would open up more crypto investment opportunities as the DeFi craze continues,
“As there is this DeFi craze happening in the space and people are looking at it, and they may be interested, and they want to participate in crypto because they see those high returns.”