Bitcoin News Today: Swiss Crypto Lending Combines 14% Yields with Bank Insurance

In a crypto market grappling with volatility and inflation concerns, investors are increasingly seeking ways to maximize returns on their dormant digital assets. Enter Fulcrum, a Switzerland-based platform launching a fully insured crypto lending service that promises up to 14% annual percentage rate (APR) on stablecoins like USDT and USDC, alongside competitive yields on major coins such as Bitcoin (BTC) and Solana (SOL), according to a GlobeNewswire release. The platform, licensed by the Swiss Financial Market Supervisory Authority (FINMA) and backed by Y Combinator, aims to address the limitations of traditional savings accounts while mitigating risks inherent in the crypto space, as noted in a CoinMarketCap article.

Fulcrum's model leverages over-collateralized loans to generate returns, ensuring that customer deposits are secured against assets held in a 50% loan-to-value (LTV) ratio. For instance, a $1 million loan requires $2 million in collateral, a structure that minimizes exposure to market swings. The platform also insures all user deposits through Lloyd's of London, a feature absent in most crypto yield products. "We operate a strict regulatory licensing and compliance framework, ensuring your trust in us is well-placed," said Matthew Curtis, CEO and founder of Fulcrum Lending. The company further stores assets with Fireworks, a trusted digital custodian, and guarantees that payouts are held in full reserve, never leveraged, according to the GlobeNewswire release.

Investors can deposit BTC, ETH, SOL, BNB, USDC, or USDT and receive interest in the same asset, with flexible withdrawal options ranging from daily to semi-annual periods. The longer the funds are locked in, the higher the returns. Borrowers, meanwhile, can access up to $1 million in USDT collateralized by their crypto holdings, with no credit checks required. This dual approach—earning interest on idle assets and borrowing against them—provides a novel alternative to traditional finance, particularly for those wary of the crypto market's unpredictability, as described in the GlobeNewswire release.

The platform's launch follows a six-month beta and alpha testing phase and positions itself as a response to the shortcomings of existing solutions. Traditional savings accounts typically offer sub-inflation rates, while crypto savings platforms often lack insurance or regulatory oversight. "We're able to offer investors a compelling alternative to traditional savings accounts built on the foundation of our secure, over-collateralized loan book," said Andrew Owen, Fulcrum's chief revenue officer. The company's 14% APR on stablecoins, in particular, could attract risk-averse investors seeking to hedge against inflation.

While Fulcrum's strategy emphasizes security and regulation, other platforms are exploring alternative approaches. Bitget, for example, recently introduced a zero-interest institutional financing program to boost altcoin liquidity, targeting market makers with tailored financing structures, according to a Bitget announcement. However, Fulcrum's focus on insured, over-collateralized lending distinguishes it as a safer option for mainstream investors seeking steady returns in a down market.

As crypto adoption grows, platforms like Fulcrum are redefining how users interact with their assets. By combining high yields with institutional-grade security, they offer a bridge between traditional finance and the decentralized future—providing tools to navigate a challenging market while preserving capital.