21bitcoin starts paying 1.21% annual interest on idle euros, with BTC payout option

Austrian Bitcoin platform 21bitcoin will start paying 1.21% annual interest on customers' uninvested euro balances from today. Customers can collect the interest in BTC without a conversion fee. 21bitcoin says it is the first provider in Europe to pay savings interest directly in Bitcoin. The company said the interest covers every euro in an account, including cash awaiting a savings-plan purchase or reserved for an open limit order. The account has no minimum deposit and no lock-up. Co-founder and CEO Daniel Winklhammer said building wealth with Bitcoin begins with the euros set aside for a purchase. German bank Volksbank Raiffeisenbank Bayern Mitte eG pays the interest. The bank has owned a stake in 21bitcoin since 2023. Customers' euros sit in a segregated trust account at the bank as instant-access savings. 21bitcoin says it passes the interest on in full and keeps no margin. The company presents the arrangement as a contrast to the high-yield promises associated with failed crypto lenders. The rate is variable, and interest is subject to German withholding tax. The launch follows 21bitcoin's zero-fee Bitcoin savings plan, introduced earlier this year. Last year, 21bitcoin teamed up with VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH on a European pilot project aimed at developing an institutional-grade Bitcoin-backed credit product. The company plans Bitcoin-backed loans, insured cold storage and multisig inheritance custody for 2027. Founded in 2021, 21bitcoin holds a MiCAR licence in Austria and is authorized by Germany's BaFin. The company reports more than 100,000 users. The company reports over €650 million in trading volume.