Amid a dramatic Bitcoin bull run, two of the most influential names in the blockchain finance industry have launched a platform to expand global lending and earning on cryptocurrency.
Customers with digital assets posted as collateral over $25,000 have been benefiting from the partnership for the last few months but it opens to all users, regardless of collateral size, on July 15, 2019.
“We’re thrilled to offer Bitcoin.com customers the opportunity to earn interest on their digital assets,” said Dan Schatt, co-founder and president of Cred, a Silicon Valley-based decentralized global lending platform that facilitates open access to credit anywhere and anytime.
A major feature of the program is that interest will be offered in a customer’s choice of Bitcoin, Bitcoin Cash or Cred’s LBA Token. This new offering is a departure from only earning interest in USD and is based on community feedback asking for more interest options. It gives customers more freedom when it comes to recommitting earned interest, Schatt said.
“Customers benefit by receiving the full upside on the amount of crypto they originally committed,” he said.
Bitcoin has surged by double digits this year, with the coin at one point pricing above $13,000 before retreating. Bitcoin.com, based in Tokyo but with offices around the world, is the leading source for Bitcoin information with more than four million Bitcoin wallets.
“At Bitcoin.com, we believe borrowing and earning services like Cred are a natural next step for Bitcoin wallet holders and will be very attractive to users of Bitcoin Cash,” said Roger Ver, CEO of Bitcoin.com.
“In Cred, we have found a like-minded partner who shares our vision and brings significant experience and a solid track record in offering reliable, secure crypto-backed lending and borrowing services to the crypto community.”
Cred, founded by former executives of PayPal and Goldman Sachs, has taken numerous steps to manage risk. The company has implemented comprehensive risk management, information security, and insurance protections, Schatt said.
“Crypto is still in many ways the Wild West when it comes to the fundamental safeguards most of us have come to expect when ensuring the protection of financial assets,” Schatt said. “Cred is on a mission to dramatically improve that. If the worst happens and Cred loses customer funds, customers deserve certainty that they will be made whole.”
The new program comes as the decentralized finance industry gets a boost from Facebook, which announced last month that it plans to introduce a Libra coin next year. The coin faces regulatory hurdles but experts predict it’s poised to transform the industry, which has a current market cap in the hundreds of billions of dollars. The U.S. Congress will discuss Facebook’s plans in hearings this week.
Bitcoin.com customers will be required to make a six-month commitment to benefit from the partnership. They will have the option to roll over assets for additional periods if they wish. Those who stake their assets with LBA token will enjoy the best interest rates and the option for early withdrawal at no penalty before the six-month term.
Assets posted in the program will be used to help increase crypto lending globally, including with retail investors and money managers who have a well-established track record, Cred officials said.
By: John Yearwood