Austrian Bitcoin platform 21bitcoin has begun paying 1.21% annual interest on customers' uninvested euro balances, with the option to receive payments directly in Bitcoin at no additional cost.
The company claims to be the first provider in Europe to pay savings interest directly in Bitcoin. Interest accrues on all euros held in accounts, including cash reserved for savings-plan purchases or open limit orders, with no minimum deposit requirement or lock-up period.
The interest payments are funded by Volksbank Raiffeisenbank Bayern Mitte eG, a German bank that has held a stake in 21bitcoin since 2023. Customer euros are held in a segregated trust account at the bank as instant-access savings, with 21bitcoin passing through the full interest rate and retaining no margin.
"Building wealth with Bitcoin does not begin with the purchase itself, but with the euros set aside for it," said co-founder and CEO Daniel Winklhammer.
The rate is variable and subject to German withholding tax. The company positioned the offering as distinct from the high-yield promises that led to the collapse of several crypto lenders in previous years.
21bitcoin holds a MiCAR licence in Austria and is authorized by Germany's BaFin. The platform reported more than 100,000 users and over €650 million in trading volume. The company launched a zero-fee Bitcoin savings plan earlier this year and previously collaborated on a European pilot project for Bitcoin-backed credit products. Features including Bitcoin-backed loans, insured cold storage, and multisig inheritance custody are scheduled for 2027.
