21bitcoin Pays 1.21% on Euro Balances Without Lending Out Customer BTC

21bitcoin launched a Bitcoin Bonus on October 1, 2026 that pays a variable 1.21% annual interest on customers' euro balances. The interest is provided by partner bank Volksbank Raiffeisenbank Bayern Mitte eG, and 21bitcoin passes it on 1:1 with no margin added.

CEO Daniel Winklhammer announced the Bitcoin Bonus in a 21bitcoin blog post. Customers can take the interest in euros or have it automatically converted into bitcoin every month with no fee, and their existing bitcoin is not lent out to generate the interest.

Where the 1.21% Comes From

Customer euro balances are held at Volksbank Raiffeisenbank Bayern Mitte eG, separate from 21bitcoin's own assets. According to Bitcoin Magazine, customer euros sit in a segregated trust account at the bank as instant-access savings.

Bitcoin Magazine also reports that Volksbank Raiffeisenbank Bayern Mitte eG is a German bank that has owned a stake in 21bitcoin since 2023. The partner bank provides the interest on the euro balance, and 21bitcoin passes that interest on 1:1 with no margin added.

21bitcoin says customers' existing bitcoin is not lent out to generate the interest. The interest is earned on the euro balance held at the partner bank, not on the bitcoin customers already hold with 21bitcoin.

Monthly Payouts in Euros or Bitcoin

Interest is calculated daily and credited at the beginning of the following calendar month after tax deduction. Bitcoin Magazine reports that the rate is variable and that the interest is subject to German withholding tax.

Customers can take the monthly interest in euros or have it automatically converted into bitcoin with no fee. At launch, the Bitcoin Bonus is available to private customers in Germany and Austria.

According to Bitcoin Magazine, 21bitcoin pitches the Bitcoin Bonus as a deliberate contrast to the high-yield promises that brought down several crypto lenders. 21bitcoin also says it is the first provider in Europe to pay savings interest directly in bitcoin, Bitcoin Magazine reported.

Why It Matters

Failed crypto-lending platforms generated yields by rehypothecating or lending out deposits, so a 1.21% product where customer bitcoin is never lent out removes the lending incentive and counterparty bet that sank those lenders. 21bitcoin's yield comes entirely from the traditional fiat banking system, with euro deposits in segregated trust accounts at the partner bank and the bank's ordinary fiat interest passed through 1:1 with no margin cut, which means savers can see exactly where every cent originates. The fee-free monthly conversion turns that fiat interest into an automatic bitcoin stacking plan, letting customers in Germany and Austria drain their euro balances into sats while their existing bitcoin stays untouched.