Uphold Launches USD Interest Accounts with Up to 5% APY for U.S. Users
Uphold introduces U.S. dollar interest accounts offering up to 5% APY, with FDIC insurance coverage, to attract new users and provide safer ways to hold capital.
Bollywood Fever: Uphold, a trading platform with around 12 million users, is launching U.S. dollar interest accounts that offer an annual percentage yield (APY) of up to 5%, aiming to attract new customers and encourage users to store more funds on the platform.
Our main goal is just to make Uphold attractive and acquire a ton of new customers from the mass market,” said Simon McLoughlin, Uphold’s CEO, in an interview with The Block.
He added that the accounts are “a safer way for people to hold dollars on the platform”, as they provide access to FDIC insurance for participating funds up to $2.5 million.
Initially, the offering is available only to U.S. users. Accounts with balances under $1,000 will earn 2% interest, while those exceeding $1,000 can earn up to 5%.
The generous APY is made possible through Uphold’s partnership with Atomic Brokerage, allowing the platform to offer these rates without impacting its balance sheet. The program, known as Atomic Cash Sweep, deposits clients’ funds into interest-bearing accounts at one or more banks, where they earn variable interest and receive FDIC insurance coverage.
Uphold’s new feature responds to customer demand for higher yields. Users tell us they want more ways to maximize the earning potential of their assets, whether crypto or fiat,” McLoughlin added. Uphold becomes the first major crypto trading platform to introduce a brokerage account offering interest on USD.
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