Cred is upping its interest rate on USD and Euro cash accounts to 10%, higher than rates reported by Bankrate.com. Interest rates often reflect the efficiency of a financial institution’s product offering. Costly branches, antiquated payment infrastructure, and a bloated cost structure are challenging for traditional financial institutions who are not leveraging blockchain technology to create efficiencies.
“As a licensed lender with comprehensive insurance, Cred’s product leverages crypto payment rails and the latest technology practices to give more back to customers.”
“Most of us have been conditioned to believe that one or two percent should be the norm, and ten percent is too good to be true. The reality is that most financial institutions incur significant legacy costs — branches, ATMs, expensive payment infrastructure and outdated technology, and pass that on to their customers through lower yield rates and higher loan costs,” said Dan Schatt, Co-founder and President of Cred.
Cred has also raised the interest rates on Gold to 5% and Ethereum to 8% when posted as collateral. Cred recently announced partnerships with Bitcoin.com, Tron, and Binance. Many Uphold customers use the platform to pay in USD and Euro, and now they can also earn on their fiat.
Cred has partnered with custodial providers such as BitGo, Xapo, and Ledger for custody solutions. In addition to the insurance Cred’s custodians offer, Cred will be releasing news on its own comprehensive insurance this week. Although Cred is not a bank and does not have FDIC insurance, Cred is a fully regulated and licensed lender and operates in 31 states.
Cred customers can commit to a fixed-term with the ability to roll over assets for additional three month periods. No account minimum is needed and interest is paid in U.S. Dollars or Stablecoin. The principal is paid back in the fiat or crypto amounts that were initially received.
“At Uphold, we are working with best of class partners to build an ecosystem that will revolutionize the personal finance industry for consumers globally. Our community is very vocal about their desire to Hodl and very happy with Cred’s ability to offer significant interest on digital assets we support when posted as collateral like USD, Euros, Gold, GBP, BTC, BCH or ETH,” said JP Thieriot, co-founder and CEO of Uphold.