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Cred (Formerly Libra Credit) Joins the Universal Protocol Alliance

August 24th, 2018 at 8:14 am UTC · 4 min read

Today, we have two new exciting developments to announce. First, you’ll notice our name change. Our move from Libra Credit to Cred is a distillation of our values — fairness, transparency and the belief that everyone should be able to own their credibility, their “cred”.

Your Cred shouldn’t be locked up within the database of a social media company, a bank, or a government. You should be able to take it with you wherever you go, worldwide. Give it to everyone and it becomes uncontained freedom and potential. With it, opportunity finds the quickest route around the globe, bypasses traditional barriers and arrives at the person who’s earned it. Every algorithm and bit of new technology that we leverage to support crypto assets is in service of our mission, to enable people to take advantage of opportunities.

That leads me to our next announcement — we are proud to be one of the founding members of the Universal Protocol (UP) Alliance.

Together with Blockchain at Berkeley, Brave, and Uphold, we are advocating a universal custody and reserve standard that we believe will usher in the next 100 million users of blockchain and crypto assets.

The founding members of UP all share our belief that a more transparent, fair and interoperable financial ecosystem will benefit everyone, and lead to more economic prosperity.

It’s often said that history doesn’t repeat itself, but it often rhymes.

When we look at how to attract confidence in crypto assets, it’s useful to understand how governments first attracted confidence in fiat currency. Since the mid 1800s, many countries guaranteed that their governments would redeem any amount of paper money for its value in gold. It increased trust on a global scale because paper currency had guaranteed value. If you replace paper money with Bitcoin and gold with Proxy tokens, we now have something similar to this gold standard — only this time imagine that Bitcoin can be represented by a Proxy Bitcoin, USD can be represented as Proxy USD, and future equities will be represented as Proxy equities through the introduction of ERC-20 compatible Proxy Tokens.

The value of a Proxy Token is fully-backed by a matching asset in the professional custody of a fully transparent and proven reserve structure, built from the ground up to support decentralized digital assets.

Who benefits from such a utility?

Let’s start with someone who loses their online banking password once a week and would love to hold crypto assets if there was a way to lower the risk. How about a family member who suddenly dies without passing their private key information to their next of kin? Key recovery and trust estate planning are essential components if we are to make the next 100 million people comfortable with crypto assets, and this is a fundamental part of the UP Platform value proposition.

Let’s say you’re a developer that has a great innovation for the crypto industry, but it involves the creation of a new blockchain and underlying token. Decentralized exchanges can now include your token in proxy form and have it reason with tokens from different blockchains. Developers can be freed to develop on the blockchain of their choice.

If you are a traditional financial institution interested in offering your first crypto asset to customers, a proxy token can be a great solution for businesses and customers alike, since they involve just one integration standard — another fundamental value proposition of the UP Platform.

Last, but certainly not least, a critical part of a thriving new proxy ecosystem will be credit. Cred will support all new proxy tokens produced as part of the UP Platform by collateralizing these crypto assets and offering liquidity throughout the crypto ecosystem. We’re proud to do our part to help bring what we hope and expect to be an unprecedented amount of fairness, transparency and prosperity to global financial systems supporting crypto assets and the UP Platform.

You can read the full Proxy Token white paper here  or view the Official Press Release

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Join the discussion of exciting things to come!




Dan Schatt, Co-Founder of Cred and Chairman of the UP Alliance

[email protected]