Lending at Bitvavo

With Lending at Bitvavo, you can earn rewards on a supported range of digital assets with reward rates as high as 2%. Lending at Bitvavo allows you to monetize your digital assets that would otherwise lie idle in your wallet. 

What is Lending?

Bitvavo Lending unlocks your digital asset's full earning potential. By enabling Lending, you consent to loan all digital assets, as selected by Bitvavo at its own discretion, to Bitvavo Custody BV. Bitvavo Custody lends your assets to trusted partners, who then perform various activities to earn rewards and share these earnings with Bitvavo Custody. Bitvavo Custody distributes parts of these earnings back to you, in return for borrowing your digital assets.

Lending at Bitvavo - Frequently Asked Questions

How can I participate in Lending at Bitvavo?

Lending can only be enabled for all assets at once. You can enable this in your account settings.

How are rewards being calculated?

Rewards are calculated based on two factors:

  1. The current rewards rate is shown in your account. The reward rate might change over time. You can keep up to date with the changes in rewards by following the Bitvavo blog.
  2. The number of digital assets you hold in your Bitvavo-hosted wallet per day. To determine this amount we look at the lowest amount you have had in your wallet on that specific day. Assets held in open orders are included in this calculation.

When you sell or withdraw the asset to an external wallet, you don't accrue any rewards on this asset from that moment on.

Why am I not receiving lending rewards on Bitcoin?

Lending Rewards for Bitcoin are paid out in Sats. Just like how 1 euro consists of 100 cents, 1 Bitcoin consists of 100 million Sats. You'll need to receive at least 1 Sat per day in rewards to get the rewards credited to your account. That's 365 Sats per year.

To receive at least 365 Sats per year with the current Bitcoin rewards percentage (0.05%), you'll need to have at least 730.000 Sats in your balance. That is 0.0073 BTC.

When do I get my rewards credited to my account balance?

The Lending rewards are accrued daily and paid out weekly on Monday in the form of digital assets, before 23:59.

How much can I receive in Lending rewards?

Reward rates for reward-eligible Lending assets can be as high as 2% over the value of the digital asset and are calculated daily. You can find the current reward rates per asset in your Bitvavo account.

USDC ~2,00%
USDT ~2,00%
ARB ~2,00%
LTC ~0,75%
BCH ~0,20%
BTC ~0,05%
FIL ~0,15%
LINK ~0,15%
XLM ~0,15%
MANA ~0,12%
DOGE ~0,10%

Am I allowed to trade and withdraw my Lending assets as usual?

On Bitvavo, there is no cooldown period for selling or withdrawing digital assets used in lending. You have the flexibility to trade and withdraw these assets whenever you choose, just like any other assets in your account.

Can the Lending reward rates change?

The Lending reward rates may change at Bitvavo’s discretion, as the rates are subject to changes caused by market supply and demand. It is possible that the Lending reward rates increase or decrease after you’ve already agreed to lend your digital assets.

Are there any tax implications for Lending rewards?

The rewards earned from lending your crypto assets may be subject to taxation. The specific tax implications vary depending on your jurisdiction and the applicable tax laws. Interest income is typically considered taxable income, and you may be required to report and pay taxes on the interest earned. It is recommended to consult with a tax professional or refer to tax authorities to understand the tax obligations associated with Lending activities in your jurisdiction.

Are there any restrictions on participation in Lending at Bitvavo?

There may be certain limitations or restrictions on participating in Bitvavo Lending. This may include restrictions based on your place of residence. 

What are the risks involved with the Lending service?

There are risks to the Lending service, as included in the Risk Disclosure Statement

Who are the third parties Bitvavo Lending works with?

We work with multiple lending partners, including lending platforms, market makers and trading firms. We regularly review our relationship with our lending partners to provide the best reward rates while keeping risks as low as possible.

All Bitvavo lending counterparties undergo an elaborate screening process to determine creditworthiness and set appropriate limits aimed at mitigating risk. The creditworthiness and reliability of borrowers are typically assessed through a combination of factors, which may include: credit history, financial statements, collateral evaluation, KYC/AML, reviewing reputation and references, IT risk assessment, and operational risk assessment.

We may at any time choose to engage new lending partners or disengage the partners we work with. This may result in a sudden change of the Lending rates, or a temporary halt of the Lending service.

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