SBI Shinsei Bank plans to launch a deposit reward program this fall, linking standard savings interest with cryptocurrency exchange vouchers. The service will give customers an added benefit on fiat deposits. It also expands SBI Holdings’ broader digital asset strategy.
The bank will offer vouchers based on part of the interest earned by depositors under the planned service. Customers will still receive regular interest in traditional currency from their deposits. They will also get vouchers equal to 20% of those interest payments as an added reward.
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SBI Shinsei Bank Links Vouchers to SBI VC Trade
The vouchers can be redeemed for major cryptocurrencies, including Bitcoin, Ethereum, or Ripple. Redemption will take place at the market rate available when the exchange is made. The vouchers will also have a fixed validity period.
SBI Shinsei Bank requires customers to hold an account with SBI VC Trade to use the reward before any voucher redemption can occur. SBI VC Trade is the licensed crypto exchange within the SBI group. That condition connects the bank product directly with the group’s digital asset platform.
Such a structure turns the product into more than just a deposit incentive scheme; it allows for the integration of SBI’s cryptocurrency services with the bank’s clients. The strategy could attract users who never used exchanges before.
Crypto reward is being brought closer to traditional savings instruments by SBI Shinsei Bank. Digital assets were generally approached with caution by banks. Their participation usually was limited to custody, trading, or investment-related products only.
This service will allow deposit holders to gain access to crypto rewards, although not through direct purchases of any kind. A depositor can preserve their fiat funds and obtain digital asset vouchers at the same time. Yet, once redeemed, those rewards would become subject to the market price fluctuations.
SBI Holdings Brings Crypto Rewards Into Everyday Banking
A deposit-based approach by SBI Shinsei Bank seems attractive to people preferring regular banking products. Incentives will come in the form of deposit interest rather than an additional crypto asset.
Further, the program is consistent with the broader efforts by SBI Holdings to incorporate digital assets into traditional banking. Reports indicated that the company had prepared itself for the rollout. These preparations were focused on linking reward points earned from deposits with access to exchanges.
SBI Holdings has extended its crypto-related activities on different fronts since May. Specifically, the firm rolled out its SBI Visa Crypto Card. With this new card, customers can turn their daily spending points into BTC, ETH, and XRP tokens.
In addition, the launch of the SBI Shinsei Bank program is also consistent with the reports of potential acquisition of Bitbank by the firm. In such a case, the move will give SBI Holdings a deeper grip on the exchange market in Japan. Previously, SBI VC Trade merged with Bitpoint Japan.
In the future, industry experts may have a close eye on customer demand, regulation, and deposit activity. The success achieved by SBI Shinsei Bank in this respect may set a precedent for banks rolling out their cryptocurrency-related reward schemes.
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