Bitcoin Suisse has announced a significant update to its digital asset custody services by removing the custody fee on USDC holdings. This change, effective immediately, is a result of the company’s collaboration with Circle, the issuer of USDC. The partnership, which began in January 2024, aims to enhance USDC liquidity across Europe by maximizing its usage through all Bitcoin Suisse channels. This move is expected to benefit clients by providing cost-efficient storage and improved liquidity for trading activities.
Enhanced Liquidity and Cost Efficiency
Bitcoin Suisse’s decision to eliminate the custody fee on USDC holdings is a strategic move to enhance liquidity and cost efficiency for its clients. By removing this fee, Bitcoin Suisse allows clients to store their USDC holdings free of charge on their Bitcoin Suisse Online Account. This account is designed for fast transactions and flexible connections to third parties such as exchanges. The elimination of the custody fee is expected to attract more clients to use USDC for their trading activities, as it offers lower volatility and high liquidity.
The collaboration with Circle has been instrumental in this update. Circle’s USDC is known for its stability and liquidity, being fully reserved and exchangeable 1:1 for US dollars. This makes it an ideal asset for traders looking for a stable and liquid digital currency. The partnership aims to expand USDC’s presence in Europe, making it more accessible and usable across various platforms.
Moreover, holding USDC at a crypto broker like Bitcoin Suisse offers several advantages. It provides lower volatility due to its fiat peg, improving portfolio stability. Additionally, USDC offers high liquidity and quick transaction capabilities, facilitating seamless trading operations. This update is expected to make Bitcoin Suisse a more attractive option for investors and traders looking for cost-efficient and liquid digital asset storage solutions.
Security and Flexibility
Bitcoin Suisse ensures that its clients’ digital assets are stored securely while providing flexibility for trading activities. The Bitcoin Suisse Online Account, where USDC holdings can now be stored free of charge, is designed for fast transactions and flexible connections to third parties. This account setup allows clients to store funds on-chain while remaining available as liquidity for trading activities.
The security of digital assets is a top priority for Bitcoin Suisse. The company uses separated blockchain addresses to hold crypto assets, providing utmost security. This setup is the optimal choice for storage supporting trading liquidity, ensuring that clients’ assets are safe while being readily available for trading.
In addition to the online account, Bitcoin Suisse offers the Bitcoin Suisse Vault for institutional-grade cold storage. While the custody fee on USDC holdings has been eliminated for the online account, holdings in the Bitcoin Suisse Vault remain subject to a custody fee. This fee is a 0.20% surcharge per annum, reflecting the high level of security and institutional-grade storage provided by the vault.
The flexibility offered by Bitcoin Suisse’s storage solutions is a significant advantage for clients. Whether they choose the online account for quick access and trading or the vault for secure long-term storage, clients can be assured that their assets are well-protected and easily accessible.
Benefits for Investors and Traders
The removal of the custody fee on USDC holdings by Bitcoin Suisse offers numerous benefits for investors and traders. One of the primary advantages is cost efficiency. By eliminating the custody fee, Bitcoin Suisse reduces the cost of storing USDC, making it a more attractive option for clients. This cost efficiency is particularly beneficial for traders who require high liquidity and quick access to their assets.
USDC’s lower volatility, due to its fiat peg, is another significant benefit. This stability improves portfolio stability, making it an ideal asset for investors looking to minimize risk. Additionally, USDC’s high liquidity and quick transaction capabilities facilitate seamless trading operations, allowing traders to execute transactions efficiently and effectively.
The partnership between Bitcoin Suisse and Circle also supports financial inclusion. By making USDC more accessible and usable across various platforms, the collaboration aims to expand the reach of digital assets and promote their use in everyday transactions. This can help diversify investment portfolios in volatile market environments and serve as a hedge in risk-off events.
Overall, the elimination of the custody fee on USDC holdings by Bitcoin Suisse is a positive development for the digital asset market. It enhances liquidity, cost efficiency, and security for clients, making Bitcoin Suisse a more attractive option for investors and traders. This update reflects Bitcoin Suisse’s commitment to providing innovative and client-centric solutions in the rapidly evolving digital asset space.
