Home S’pore Hodlnaut offers a 10% interest rate on your cryptocurrencies


For the founder of the high-performing cryptocurrency savings account Hodlnaut, Zhu Juntao had always been fascinated by the operation of financial systems. A graduate of Singapore Management University, Jun Tao joined Credit Suisse’s derivatives table for three years before meeting cryptocurrency in 2017.

“I bought my first bitcoin in 2015 and started making one-off arbitrations through the various cryptocurrency exchanges. It was very beneficial for me then ”.

However, Juntao soon received a slap in the face with a 55% capital gains tax in Japan. He found the taxes too high, so he left the country to return to Singapore.

In 2019, Juntao and its co-founder officially launched Hodlnaut, a cryptocurrency lending and lending platform that allows customers to deposit their cryptocurrencies and earn a 10% interest rate.

Earn a 10% interest rate on your cryptocurrencies

For users unfamiliar with the high interest rates offered by cryptocurrencies, it is not uncommon to question the sustainability of this high interest rate, especially when traditional banks only offer an annual interest rate. ‘one or two per cent.

In the world of traditional finance, investors and traders would be familiar with leverage operations, and leverage is often only provided up to ten times more than collateral;

This is also how real estate loans work, where your property is pledged as collateral to the bank and the bank can lend you up to 90% of the value of the property.

Image credit: Hodlnaut

However, in the world of cryptocurrency there is a leverage of up to 100 times. Institutions could borrow from companies like Hodlnaut to march the trade and use a leverage 100 times in which they could win or lose 100 times. This has fueled the demand for cryptocurrencies that will be used for collateral, with institutions willing to pay up to a 20% fee per cryptocurrency.

Basically, what Hodlnaut does is simply lend these cryptocurrencies and share the bonus earned with users.

Getting started with Hodlnaut is easy: Once you sign up for an account and complete the Customer Knowledge Process (KYC), you can just deposit your cryptocurrencies in Hodlnaut and start earning interest on a daily basis.

Currently, Hodlnaut does not allow the direct purchase of cryptocurrency dollars, also known as fiat-onramp, on its platform and only accepts cryptocurrency deposits.

“Our current approach is to make sure we get the best yields on interest rates for our users’ cryptocurrencies and we don’t focus on providing solutions on the ramp. There are other industry players who are now focusing on this. problem, “Juntao shared with Vulcan Post.

How they differ from similar players

This model is not new, as several companies with similar offers have appeared in recent years. Some of the most notable companies in this space include Blockfi, Celcius and Gemini.

When asked how Hodlnaut compares to its competitors, Juntao said they currently offer the fairest and highest interest rates to their customers, up to ten percent in stable currencies, a term used to describe cryptocurrencies with their value tied to the US dollar and six. percent in bitcoins.

Comparison of cryptocurrency interest rates from May 2021
Comparison of interest rates on cryptocurrencies in May 2021 / Image credit: Hodlnaut

“Apart from offering the best rates, we are in Singapore and we are a complete team from Singapore. Our customers and users can be assured that they can contact us at any time and fully comply with any regulatory requirements of the Singapore Monetary Authority (MAS), ”Juntao told Vulcan Post.

To date, Hodlnaut has more than 5,000 users who rely on them to manage more than $ 300 million in cryptocurrencies. That’s 100 times more than they managed a year ago and an even higher amount compared to what they launched.

Course Asset under management
2019 US $ 30,000
2020 3,000,000 US dollars
2021 300,000,000 US dollars
Hodlnaut’s managed assets grew 100 times each year

Although Hodlnaut has more than $ 300 million in assets under management now, things weren’t all rosy for Hodlnaut when they started.

We started with my co-founder and I managing just under $ 30,000 in asset management. As we grew older, our corporate bank OCBC closed down abruptly for no official reason from the bank.

We got a call for our account to close and we have to go withdraw the money. I remember coming down to withdraw all cash from the bank and to this day I remain a permanently banned customer from OCBC.

– Zhu Juntao, founder of Hodlnaut

Green light is expected to obtain cryptographic licenses in Singapore

With cryptocurrencies gaining more awareness and interest from Singaporeans, MAS has established its first regulatory framework to govern cryptocurrency services called the Payment Services Act, which came into force on January 28, 2020.

By law, Singapore cryptocurrency providers must acquire a license and be regulated under the authority; it was finally passed in Parliament in January this year.

Currently, Juntao and his team are looking forward to the outcome of the MAS license they have already submitted. Companies that are not licensed under the Payment Services Act cannot operate in Singapore, although Juntao assured us that MAS had granted them an exemption.

Although the process of obtaining the official license is longer than expected, Juntao believes that Singapore is the country that offers the best environment to operate in financial companies and is confident that they will soon receive the results of the sun. License application.

With the company growing rapidly, the team is looking to release a version of Hodlnaut for iOS so customers can track the value of their portfolio on-the-go.

The company is also exploring ways to help its customers access higher-performing products in the cryptocurrency space.

Featured Image Credit: Hodlnaut

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