Digital payments startup Uphold has entered into a new partnership with crypto lending platform Cred to offer new lending and earning products.
In today’s business community, partnership has become one of the most promising tools on the way to new amazing developments and interesting projects that are aimed at offering customers really unique experience and opening new opportunities for them.
News about recently established collaborations regularly appears here and there. This time the headlines are made by Uphold which is a major global digital money platform, that has conducted transactions worth over $4.0 billion across 184 countries, and Cred that is a crypto-backed lending provider with over $250 million in credit facilities.
Having announced their partnership Uphold and Cred have revealed their plans to launch two cutting edge blockchain-based consumer finance products: Uphold Earn and Uphold Borrow. Both products are aimed at helping customers to earn interest from stablecoin holdings and borrow money against the cryptocurrencies they have.
Uphold Earn and Universal Dollar
With its Earn product, the company offers its customers a posibility to earn interest on Universal Dollar holdings. Earlier this month the company together with a number of other startups including Cred, Brave and Blockchain at Berkeley has announced the Universal Dollar which is a dollar-backed stablecoin.
The Universal Dollar is said to be a fully-transparent, digital asset backing 1-to-1 with U.S. dollars stored in Federal Deposit Insurance Corporation-insured bank accounts. The customers who buy the Universal Dollar can benefit from the Uphold Earn product and earn up to 5 percent in interest, among other advantages.
Uphold Borrow Product
Uphold’s Borrow product presupposes usage of Cred’s quarter-billion-US dollar credit facility. Thanks to the new company’s product, consumers will have an possibility to borrow funds against the digital assets stored with Uphold. The sizes of loans may range from $1,000 to more than $200,000.
Now individuals as well as corporate customers do not need to seek for selling their crypto holdings when they need funds. The company enables them to receive loans in U.S. dollars collateralized by their digital assets. Moreover, a customer will have access to these loans even when a line of credit is paid off and closed.
Benefits for Customers
Explaining the idea and main aim of their new products, JP Thieriot, Co-Founder and CEO of Uphold, said:
“Uphold Earn and Borrow mark the first time that we’ve seen fiat currencies, stablecoin currencies and blockchain working together to benefit a mass consumer market. Traditionally, the average consumer has been wary of digital currency for two reasons: volatility and a fear that, if they lose their key, they lose their money. Universal Dollar helps solve for both of these problems.”
The Universal Dollar will provide customers with higher levels confidence and stability just like those that the majority of people expect to get from traditional financial assets, including safety, inheritability and reduced exchange risk.