Cred, a leading provider of crypto-backed lending, has announced that it is now possible to obtain USD loans against XRP.
Cred was founded by Lu Hua and Dan Schatt. The white paper for the Cred platform explains that is implemented using the Ethereum blockchain. More interestingly, it says that Cred platform offers the following benefits to crypto traders/investors:
- Crypto-to-fiat loans: “collateralization of cryptocurrencies to spend fiat without sacrificing… current crypto position”
- Crypto-to-stablecoin loans: “enabling borrowers to hedge price without exiting”
- Crypto-to-crypto loans: “allowing borrowers to pledge other alternate tokens for more mainstream crypto currencies (i.e. BTC/ETH) with better liquidity”
Here is a quick overview of how the Cred platform works:
“The Cred platform focuses on a dual-credit risk scoring mechanism that takes into account both the creditworthiness of the pledged collateral, as well as the individual credit information of the borrower. Borrowers may pledge any crypto-assets as collateral and receive loans in their desired asset. Through smart contracts and our own proprietary collateral valuation and liquidation system, Cred will lock in agreed terms between borrowers, lenders, custodians, guarantors and liquidators.”
Cred blog post about this announcement says that “XRP can now be used as collateral” to access its crypto line of credit (C-LOC), which means that XRP HODLers needing “liquidity can simply borrow against the token instead of selling.” You can join the early access wait list by visiting Cred's website and clicking on the “Get Early Access” button on the landing page.
Cred, which accepts BTC, ETH, and XRP as collateral, says that a crypto line of credit allows you to “spend Cash and keep HODLing,” thereby “continuing to invest in the future.”
Mike Arrington, Founder and Partner at digital asset management firm Arrington XRP Capital had this to say:
“As a Cred borrower, I appreciate how responsive Cred is to my needs. They continue to impress me with their ability to act as a trusted bridge between the traditional financial services ecosystem and the crypto community. Cred is successfully building the next generation of lending and earning products and their recognition of XRP as an asset class is important.”
And Dan Schatt, Co-founder of Cred, stated:
“We’re thrilled to offer XRP holders the same low rates and convenient liquidity services as ETH and BTC holders. We’re looking forward to continuing to support our many partners who are integrating the Cred platform for the benefit of their users.”
Featured Image Courtesy of Cred LLC
