Yet again, Ripple is making headway with their ability to form high-profile partnerships and collaborations with established financial entities. Only this time, they are not collaborating with a payment services provider or bank, but rather the leading crypto-backed lending firm in the world.
XRP Recognized as an Asset Class
Cred, the crypto-backed lending firm with over $300 million in credit lending facilities, has recently announced that they recognize XRP as an asset class and will be offering USD loans, collateralized by XRP.
Ripple customers now have the opportunity to receive USD while saving their XRP for the long term. No longer will XRP holders have to sell their XRP tokens and incur taxes to receive USD.
Instead, they can simply lock their XRP up and get USD loans at a low single-digit interest rate.
XRP holders can get started today by visiting www.mycred.io and clicking “Get Early Access.” By doing so, you will be joined a waitlist and receive early access to the lending service when it goes live. The only condition is that you must reside in a country supported by Cred.
While the announcement had little effect on the price of XRP, there is still much excitement surrounding the development.
Mike Arrington, a well-known Ripple investor and Founder of Arrington XRP Capital, expressed his excitement over this new development:
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.
Dan Schatt, the co-founder of Cred had this to say about the announcement:
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.
Cred, The Largest Crypto-Backed Lending Firm
Cred describes itself as “a decentralized global lending platform that facilitates open access to credit anywhere and anytime.”
It is the largest crypto-backed credit lending firm in the world with $300 million in credit facilities and service in over 180 countries.
Cred also has their own cryptocurrency called the Lend-Borrow-Asset (LBA) token.
As Schatt put it:
LBA is designed to empower individuals and companies to take control of their financial services, lowering interest rates on loans and increasing returns on digital assets. It will also become a powerful governance utility, allowing LBA customers to vote on product enhancements that are meaningful to the LBA community.
All in all, Cred’s mission is to revolutionize the lending industry by combining the established global lending network with the power of blockchain technology.
