KAST Reserve Explained: Safety, Security & Custody
How KAST Reserve works one month after launch: where funds are held, how rewards are funded, and why balances remain available to spend with no lock-ups.
A month ago, we launched KAST Reserve, a separate USD balance that lets KAST members keep funds available for spending while receiving rewards on balances they hold on the platform.
Since then, we’ve had questions about how Reserve works, where funds are held, and how rewards are funded. This article answers them.
Short Summary
It’s very simple. KAST funds the rewards directly from its own revenues and corporate balance sheet, rather than lending customer balances, or using derivatives, DeFi, and other third-party risk activities.
It’s a promotion for our loyal users.
KAST’s treasury policy prioritizes liquidity and conservative risk management to support customers’ redemption rights.
Current boosted rates are:
- Standard: 8%
- Premium: up to 10% on eligible balances within the applicable cap
- Private: up to 12% on eligible balances within the applicable cap
What Is KAST Reserve?
Reserve is a separate USD balance within KAST, alongside your USD Spending Balance. Funds can be moved back at any time, with no lock-up periods.
Redemptions on USD balances are supported by KAST’s balance sheet, with treasury managing the assets in stablecoins conservatively to ensure ongoing liquidity.
The Reserve structure avoids exposure to DeFi strategies and the wider market risk associated with lending, leverage, derivatives, or other third-party activities.
Reserve is not a bank account, savings account, checking account, or deposit account.
As with any KAST USD balance, users should review the applicable Terms and understand the relevant product risks.
Where Do Reserve Rewards Come From?
Reserve rewards are promotional rewards funded directly by KAST’s revenues and corporate balance sheet. They are not interest, APY, yield, or an investment return.
KAST may change, pause, or end the program, including its rates, eligibility requirements, caps, and availability.
How Do Reserve Rewards Work?
Rewards are calculated daily and are typically credited to your USD Spending Balance at the end of the day. They are not automatically added back to Reserve.
Current boosted rates are:
- Standard: 8%
- Premium: up to 10% on eligible balances within the applicable cap
- Private: up to 12% on eligible balances within the applicable cap
The boosted period ends on 30 June 2027 or when total Reserve deposits reach $100 million, whichever comes first. After that, the standard reward rate and program terms apply.
Your reward depends on your eligible balance, membership tier, the applicable cap, and how long your funds stay in Reserve that day. The feature may not be available in all jurisdictions. T&Cs apply.
How to Deposit to Reserve
Open Accounts, select your Reserve account, tap Deposit, choose the amount you want to move, and confirm.
How Can I Use My Reserve Balance?
You can move eligible USD into Reserve and back when needed.
For eligible card spending, KAST uses your USD Spending Balance first. If that balance is not enough, eligible Reserve funds may be used for the remaining amount, depending on the applicable product rules.
If Reserve funds are used for a purchase, your Reserve balance decreases and your future rewards may also decrease because rewards are based on your eligible Reserve balance. Refunds and card-related credits are returned to your USD Spending Balance, not automatically to Reserve.
The Bottom Line
Reserve is for eligible users who want to keep USD available while receiving promotional rewards. You can move eligible funds into Reserve and check your current rate, eligibility, and applicable terms in the KAST app.
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Disclaimer: This content is for general informational purposes only and does not constitute investment, legal, tax, or financial advice. Digital assets involve high risk and may result in total loss. Please do your own research and consult professional advisors before making any decisions. Read full disclaimer here.