Blockchain Lending Platform Offers $50M Credit Facility on XRP
Blockchain-focused lending company Cred said it had secured a fresh $50 million for its credit facility for XRP borrowers.
Cred, a decentralized global lending platform that was founded by former PayPal financial technology executives, is offering a new lending facility using XRP as collateral after it secured a fresh $50 million in funding.
In a statement, the company said XRP holders could borrow money against their XRP tokens and at the same time, have the opportunity to hold on to their XRP tokens as long as they want to without the necessity to sell or face the risk of incurring tax liabilities.
“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."
Under the new credit facility program, holders of XRP tokens in multiple countries can apply for a loan for as low as single-digit interest rates. Borrowers should log in at www.mycred.io and click the Get Early Access button to secure a loan.
Cred claims to have generated more than $300 million for its credit window that is available for lending to interested borrowers. The amount is three times larger than the entire money of the whole industry, it said.
More importantly, a number of major digital wallets and cryptocurrency exchange platforms are integrating Cred’s Crypto Line Credit (CLOC) into their system to maintain their advantage and market leadership. Only recently, Cred said it would power the earn and borrow product lines for Uphold and Universal Protocol Alliance.
“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.”
In late October, Cred appointed three executives, including one from PayPal and Goldman Sachs to strengthen its lending platform. Cred hired Maxim Rohkline as chief product officer, James Alexander as the chief capital officer and Richard Oh as general manager of its Asia unit. All three have strong backgrounds in financial technology.
Oh was a former head of PayPal’s Asia-Pacific region, while Alexander was a former executive at Goldman Sachs, Royal Bank of Canada, and Nomura and is a co-founder of Swiss merchant bank Alternative Capital Associates.