Cred, a digital asset lending platform, has decided to join Visa’s Fast Track program to expand its network and offer better borrowing and lending services.
The announcement that came on September 8 from the San Francisco-based platform Cred revealed that the aim was to ride on the extensive reach of Visa to expand and fast track adoption of borrowing and lending of various cryptocurrencies.
Visa’s head of crypto Cuy Sheffield even expounded how Cred would benefit from such a combination.
“Through the Fast Track program, we can support Cred with access to Visa’s experts, technology, and resources to scale with efficiency.”
Via the reach and security that the payment giant provides, Cred will increase the popularity of its crypto loans – lending and borrowing of various cryptocurrencies in a decentralized ecosystem.
Fast Track Program Offered by Visa Is Enormously Beneficial to Cred
Besides relying on Visa’s network to send interest payments directly to customer bank accounts, Cred will now enable customers to use Visa payment products to acquire digital assets easily. Meaning, customers will no longer need to liquidate their crypto assets in order to access a credit line instead they will use the Crypto Line of Credit (C-LOC).
In a statement issued to Cointelegraph, Dan Schatt – Cred’s CEO and founder – said that Cred’s mission is to create a bridge between the traditional centralized financial system and the very dynamic and evolutionary DeFi space. He further added that Visa, together with its banking links, will facilitate interest payouts in local fiat currencies for Cred customers. Such kind of feature was earlier restricted only to certain areas.
Cred, as a financial service provider, is renowned for supporting a couple of well-known blockchain organizations globally in terms of financial applications, crypto exchanges, foundations, and wallets. Heading to 2021, the FinTech hopes to enter into viable partnerships that would enable it to harness blockchain’s power and use it to provide various credit facilities efficiently.
Before this event, LastBit and Strike – Bitcoin lightning startups – had joined the program.
DeFi Popularity Is Increasing
Soon after the launch of Compound, the Ethereum-based lending platform, as well as crypto lending and borrowing popularity shot up. From the total value locked in DeFi, more than 40% represents the total value locked in lending and borrowing protocols.
Only $1 billion worth of funds existed across various DeFi applications in the first week of June. Today, the DeFi market is estimated to worth over $7.9 billion, just three months later. Even more interesting is the fact that, at one point, during the first week of September, it rose to an all-time high of $9.5 billion.