Home / Crypto News / Owners of Ripple XRP can now use their coins as collateral

Owners of Ripple XRP can now use their coins as collateral


Ripple XRP is not only becoming increasingly popular with financial institutions. Now, users can also use their ripple coins as collateral for loans. This is possible through the US company Cred, which operates a decentralized credit network. Cred has announced on medium and via Twitter to immediately lend out loans whose security consists of Ripple XRP .

Cred's customers can borrow in US dollars without having to sell their Ripple XRP. At the same time, they avoid having to pay taxes by selling their coins. On Cred, users can get flexible and revolving crypto credit lines (“C-LOC”).

Cred's co-founder, Dan Schatt, said:

“We are pleased to offer [Ripple] XRP's owners the same low interest rates and convenient liquidity services that are already available to Ethereum and Bitcoin owners.”

Arrington XRP Capital's founder, Michael Arrington, was also thrilled with the new offer. He commented:

“As a cred borrower, I particularly like how quickly Cred responds to my needs. Cred always impresses me with its ability to act as a bridge between the traditional financial system and the crypto community … recognizing [Ripple] XRP as an asset class is an important step. “

What is Cred?

Cred is a decentralized credit platform based on the Ethereum Blockchain. The platform is designed to provide open access to loans from anywhere, anytime. Cred was founded by former PayPal finance technology experts. To achieve its goal, Cred has a broad team of business leaders, machine learning skills and the power of blockchain technology. The company maintains field offices in San Francisco, Shanghai, Singapore, Sydney and Munich.

Cred, his new partner and the future

In October 2018, Cred announced an important partnership with Uphold. Uphold is a large, cloud-based platform for financial services. It has already carried out $ 1 billion worth of transactions in 181 countries. As a result of the cooperation, two modern consumer products are to be developed on a blockchain basis. These products should be called “Uphold Earn” and “Uphold Borrow”.

Via Uphold Earn, users can lend their cryptocurrencies and receive 2 to 5 percent interest. Borrowers in turn have access to flexible loans with low interest rates up to 9 percent.

Next, both companies, along with other partners, have issued a new stablecoin called Universal Dollar. The CEO of Uphold, J. P. Thieriot, told Forbes:

“Typically, the average consumer was skeptical of cryptocurrency for two reasons. These are the volatility and the fear to lose the private key and thus his money. Universal Dollar helps solve both problems. “

Sources: Medium, Chepicap, Forbes, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/owners-of-ripple-xrp-koennen-yhre-coins-jetzt-als-kreditsicherheit-verwenden/

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