The leading crypto-backed lending platform has announced that XRP holders can now use their tokens to collateralize USD loans.
Cred Adds XRP to List of Accepted Assets
Holders of Ripple (XRP) in need of fiat money need not sell their assets now. They can now avail a loan against their cryptocurrencies using Cred’s line of credit (C-LOC).
According to an announcement published Thursday on Cred’s official blog, the firm, which has over $300 million in credit facilities, has secured $50 Million for XRP based loans.
Cred is a cryptocurrency start-up that offers its customers a decentralized lending eco-system. In addition to Bitcoin (BTC) and Ethereum (ETH), XRP has been added to the list of cryptocurrencies that the firm accepts as collateral.
According to the firm, the loans at “single digit interest rates” are available to customers in multiple countries.
Michael Arrington, Founder of Arrington XRP Capital and an investor in Ripple, said:
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.
Benefits of Using C-LOC
The cryptocurrency market has lost 75% of its value since it hit an all-time high earlier in January. XRP has lost over 86% value. Investors who bought the digital asset at its peak value stand to lose a significant amount of money if they were to liquidate their assets now.
C-LOC enables holders of Bitcoin (BTC), Ethereum (ETH) and now Ripple to collateralize their assets and receive fiat-based loans in USD. Customers get their assets back once the loan is paid off.
According to the announcement:
Whether you want to diversify your assets to mitigate risk, defer capital gains tax (consult with a financial advisor or professional), or simply need money fast, a Cred loan makes your crypto work for you.
How to Apply
Interested parties can access C-LOC through the Cred website. Users can register now for early access. The company also noted that it will be releasing its Borrow and Earn products via its strategic partner, Uphold, in the next few months.
Speaking about the addition of XRP, Dan Schatt, Co-founder of Cred, said:
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.
Crypto-based lending is an excellent option for investors who want liquid cash urgently but don’t want to lose out on the long-term investment potential of cryptocurrencies.
Have you ever used a crypto-backed lending platform? What do you think of Cred’s decision to add XRP? Let us know in the comments below.
Images courtesy of Shutterstock