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Naspers-backed Luno in deal for crypto savings accounts

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Luno CEO Marcus Swanepoel.
Luno CEO Marcus Swanepoel.

Naspers-backed crypto-currency exchange Luno has partnered with Genesis, a provider of digital currency brokerage services, to enable traders to earn interest on their crypto holdings.

In a statement, Luno says the partnership creates savings accounts providing institutional-level interest rates to clients in traditional and emerging markets.

Luno attracted $3 million (R43 million) in funding in 2015, led by Cape Town-based technology investor Naspers, Africa’s biggest company.

The crypto-currency exchange says these savings accounts will provide traditionally underbanked people in emerging markets access to banking services via the market infrastructure built for the global crypto-currency community, while providing another potential source for generating yield on crypto holdings for traders in all markets.

“We share Luno’s passion for making it safe and easy – across all segments of the market – to learn about, buy and store crypto-currencies,” says Genesis CEO Michael Moro.

“By combining Genesis’s infrastructure with Luno’s footprint in more than 40 countries, we’re creating a fairer, more inclusive financial system by providing access to interest-bearing products to historically underbanked and unbanked populations.

“We’re operating in a historical context where global fiat monetary policy has produced record low interest rates in traditional money market and savings accounts. The interest customers can earn on their crypto is compelling. It presents an opportunity to attract those unfamiliar with crypto, and to offer them a very clear value proposition,” Moro says.

Luno CEO Marcus Swanepoel, comments: “Our partnership with Genesis allows us to offer more diversified financial products to our customers. We’re dedicated to providing innovative financial solutions to consumers all over the world – whether they are in Africa, Asia or Europe – regardless of their local currency.”

“Digital currency investors have become increasingly sophisticated, seeking not just liquidity from exchanges, but also a competitive yield on their crypto assets,” says Leon Marshall, head of institutional sales at Genesis.

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