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first_img Castle opens Bitcoin savings stack to individuals, with dividends redeemable for Bitcoin at any ratio

According to Bitcoin Magazine, the Bitcoin fintech company Castle announced that it will open its automated Bitcoin financial stack to individual users and launch a pioneering feature in this category: users can choose to receive dividend income in cash or Bitcoin at any ratio.Castle's revenue comes from the perpetual preferred stock STRC issued by Strategy, which was incorporated into the platform earlier this year and currently pays an annualized dividend of 12% on a semi-monthly basis. Users can receive 100% of the dividends in cash, convert 100% to Bitcoin, or choose any ratio between the two. According to the company, most users opt for a compromise solution, using cash to cover daily expenses while automatically reinvesting the remaining portion into Bitcoin with each dividend payout.Castle co-founder and CTO João Almeida stated that investors have long faced a dilemma of choosing between stable income and holding Bitcoin. Castle allows users to achieve both cash flow and long-term upside by automatically converting a portion of the dividends into Bitcoin. Previously, Castle only catered to business clients such as restaurants, gyms, accounting firms, and e-commerce; the opening of personal accounts was due to repeated requests from business owners. Castle was co-founded by Almeida and CEO Stephen Cole and has received investments from Boost VC and Winklevoss Capital.

first_img Morpho will expand the fixed-rate Midnight market to Ethereum

According to The Defiant, the decentralized lending protocol Morpho deployed its fixed-term, fixed-rate lending agreement Midnight to Ethereum on September 8, expanding the product from the Base network to Ethereum, allowing Ethereum users to access USDC loans collateralized by WBTC or cbBTC. Morpho co-founder Merlin Egalite stated that the Ethereum launch will start with the "USDC | cbBTC and USDC | WBTC markets" and will gradually expand.The core difference between Midnight and Morpho Blue lies in interest rate certainty. Blue uses open loans where interest rates fluctuate according to a formula; Midnight, on the other hand, trades credit units at market-priced rates with fixed terms, allowing borrowers to determine financing costs in advance, and lenders can lock in returns instead of bearing interest rate changes with each block. Midnight lenders purchase credit units at prices below the one-to-one redemption value at maturity.However, the largest potential source of funds for Midnight remains constrained. The Morpho Vaults, holding approximately $5 billion in deposits, can only allocate to the Morpho Blue market until the DAO enables the Midnight configuration. Morpho co-founder and CEO Paul Frambot stated that enabling the Vault configuration requires just one DAO transaction, but Vault activation is expected to be achieved in the fourth quarter. At launch, the total deposits in the Ethereum Midnight market were approximately $7.41 million, with outstanding loans of about $2.63 million.
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