Cred, a cryptocurrency loaning service, has recently announced the addition of Ripple, currently the third most valued cryptocurrency as recorded by CoinMarketCap, as an option for borrowers to use as collateral. According to an official press release, the addition now enables Ripple holders to get loans without having to sell their XRP tokens or pay tax on the digital asset.
Ripple Holders can Now Borrow Loans on Cred Using their Holdings
The cryptocurrency lending platform, Cred has a mission to allow anyone on the crypto space access loans while using their crypto holdings as collateral. The Blockchain startup which kick-started operations this year was founded by former PayPal executives, Dan Schatt, and Lu Hua. Its crypto loan service is available in several countries over the globe at single-digit rates through its Crypto Line of Credit (C-LOC). This allows for crypto holders to deposit their cryptocurrency coins or tokens as collateral to be granted the loans by Cred. The other two cryptocurrencies permitted to be used as collateral for loans include the top two coins in terms of market capitalization, Bitcoin and Ethereum. The cryptocurrencies are paid back into the borrowers’ wallets after the loans and interest have been settled.
Co-founder Dan Schatt spoke on the inclusion of Ripple as a collateral option on Cred and was excited at the fact that Ripple holders could enjoy the same rates and liquidity as holders of Ethereum (ETH) and Bitcoin (BTC). Schatt also stated that the crypto lending service would keep on aiding its partners which include Bamboo Fund, Async, Signal Ventures, LinkVc, Dfund, Signum Capital, AlphaBit, Dekrypt Capital, to mention a few, who incorporate the Cred platform as an added advantage for their users.
The Competition for Number One Crypto Lending Service
Mike Arrington, the founder of Arrington XRP Capital, who also uses Cred, lauded the blockchain startup for identifying with Ripple as a digital asset. He noted that;
“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.”
Crypto investors have experienced a new upsurge of possibilities since the option to be lent fiat currency while using their cryptocurrency as collateral has emerged. Last month October, SALT Lending created a platform for Dogecoin holders to borrow loans, as a result of the rise of the price of Dogecoin in market capitalization. The 25th ranked cryptocurrency coin has risen by more than 80 percent since the third quarter of the year.
SALT Lending also allows for Litecoin holders access to its lending service and also reduced its interest rates to 5.99 percent for loans below $75,000 and 11.99 percent for loans up to $25 million. The competition in the crypto lending space is now getting more stringent as SALT Lending’s competitor, BlockFi, stepped up their game with the addition of the Gemini Dollar, GUSD, as collateral for loans on its platform. GUSD is a coin issued by the crypto exchange, Gemini, startup of Bitcoin billionaire twins, Cameron and Tyler Winklevoss.
One might recall that early this year, Ripple moved into a shock second place on CoinMarketCap ranking as the most valuable altcoin ahead of Ethereum. This is one of the most probable reasons for the addition of XRP to Cred’s lending service.