Zerodha to Launch Fixed Deposits on Coin Platform with Blostem

Zerodha, one of India’s leading financial services companies, is preparing to launch a fixed deposit (FD) product on its Coin platform within the next two weeks, according to a report by Moneycontrol. This initiative signifies Zerodha’s strategic expansion beyond mutual funds and government securities, targeting low-risk investment options for long-term investors.

Collaboration with Blostem

The new FD product will be developed in partnership with Blostem, a fintech startup based in New Delhi that has successfully raised nearly $1 million to date. Alongside this launch, Zerodha’s investment arm, Rainmatter Capital, is expected to spearhead a new funding round for Blostem, although the specifics of the funding amount have yet to be disclosed. Notable investors in Blostem include AC Ventures, Mobikwik, and the founder of Delhivery, Kapil Bharti.

The upcoming fixed deposit feature will enable users to establish deposits directly through the Coin app. Notably, users will not need to maintain a savings bank account with the same financial institution. Most deposits are anticipated to be placed with Small Finance Banks, which generally offer higher interest rates than traditional commercial banks. The entire process will be fully digital, reflecting Zerodha’s commitment to a minimalist approach to finance, which aims to simplify long-term investing while ensuring transparency and ease of use.

Enhancing the Coin Experience

It is important to note that Coin operates independently from Zerodha’s trading platform, Kite, designed for active traders and short-term investors. Coin specifically focuses on long-term wealth-building products, including mutual funds, Sovereign Gold Bonds, Government Securities, and the National Pension Scheme (NPS). Currently, the platform manages assets totaling ₹1.6 lakh crore, primarily through commission-free direct mutual fund investments and systematic investment plans (SIPs).

Zerodha aims for Coin to become the preferred platform for passive, low-risk investing, where users can “put money and forget about it” until needed in the future. According to a source familiar with the matter, “Kite will continue to serve active investors and traders, while Coin will focus on those seeking steady, long-term returns.” This separation is designed to mitigate impulsive trading and emotional decision-making, allowing investors to manage risk and behavior more effectively.

The introduction of fixed deposits is a logical progression for Zerodha’s Coin ecosystem, complementing its existing range of stable investment products. This development is likely to attract conservative investors who prefer guaranteed returns alongside their market-linked portfolios. As the partnership with Blostem develops, Zerodha appears well-positioned to bridge the gap between traditional savings products and modern digital investing. This shift aims to create a more comprehensive and accessible financial platform for users across India.