At Cred, we talk a lot about how we can use blockchain and crypto to create a more fair, transparent and inclusive financial system. We are lucky to be working shoulder to shoulder with likeminded blockchain pioneers in the industry who share our vision. Uphold, Blockchain at Berkeley, Brave software, and Cred have joined forces to found the Universal Protocol Alliance, dedicated to removing the obstacles necessary to usher in the next 100 million users of crypto.
Today, we’re happy to announce that we are a step closer to fulfilling our mission, with the development of a new USD Stablecoin which allows customers to earn interest on their digital assets. Whether you live in Turkey, Argentina or the United States, you will have an opportunity to benefit from this Universal Dollar by earning interest. This token, like all tokens issued by the Alliance, allows anyone to audit on-chain minting process to ensure the universal dollar is always pegged 1:1 with the US Dollar.
Universal Protocol Alliance Announces Universal Dollar
Industry coalition aims to bring the next 100 million users to cryptocurrency space with access to high yields, better credit
SAN FRANCISCO — October 9, 2018 — The Universal Protocol Alliance, a coalition of leading blockchain organizations, including Uphold, FBG Capital, Cred, Blockchain at Berkeley, and Brave, announced today, at San Francisco Blockchain Week, their Universal Dollar (UPUSD).
The UPUSD is a fully-transparent, digital asset that is collateralized 1-to-1 with U.S. dollars to be held at U.S. domiciled, FDIC-insured banks. The stablecoin is specifically designed to attract the next 100 million users into crypto by allowing access to higher yields on pledged collateral and more affordable credit than available from many traditional banks.
The stablecoin is underpinned by reserve management developed by Uphold, the world’s most transparent digital money platform, which has handled nearly $4 billion in transactions and publishes its assets and liabilities in real-time.
‘This is crypto finally delivering the goods to the mass market,’ said JP Thieriot, CEO of Uphold. ‘Worldwide, over 2.5 billion people with bank accounts may be interested in cheaper credit and a higher yield on their collateral. This isn’t about imagined “utility” for some stretch use case. The Universal Dollar should have broad appeal to a wide array of people and, for some in developing economies, could be life-changing.
‘Without thousands of employees, miles of the high-rent real estate and the baggage of legacy systems, companies in our industry have a big structural advantage over traditional banks. This advantage has to accrue to the benefit of the mass market, or our industry will remain the exclusive domain of technophiles and speculators,’ said Thieriot. The Universal Dollar introduces many of the user safeguards and benefits expected of conventional financial assets, including:
- Safety: fully reserved, built-in loss recovery and optional custody of private keys.
- Inheritability: users may nominate a beneficiary who can ‘call’ the asset on account dormancy.
- Reduced exchange risk: thanks to a ‘detachable’ wallet that permits ‘self-custody’ at exchanges.
- Yield: can earn up to five percent annually on the value of digital holdings.
- Credit: flexible borrowing on competitive terms, secured by the value of digital assets.
‘The Universal Dollar should help crypto and blockchain jump the rails, creating mainstream financial products that allow virtually anyone, anywhere* to buy digital assets, and then borrow against them, as well as earn interest on fiat-stable collateral pledges,’ explained Thieriot.
As part of this initiative, any supported digital asset held at Uphold could be used to earn interest* and qualify the user for a secured line of credit.
‘Traditionally, you’ve had to own a home to have access to cheap credit products, such as the American “HELOC”. Now, a new generation can access similarly convenient credit without such a high bar and through simple ownership of digital assets,’ added Dan Schatt, Co-Founder and President of Cred.
Earlier this year, Uphold, FBG Capital, Cred, Blockchain at Berkeley and Brave announced a transparent reserve standard that will underpin a new family of Universal Tokens aiming to provide ‘safer’, more practical, and more ‘spendable’ forms of major cryptocurrencies. Alongside the Universal Dollar (UPUSD), the Universal Protocol Alliance will soon launch Universal Bitcoin (UPBTC) as an ERC-20-compatible, fully-reserved and interoperable token.
*Subject to KYC-AML-OFAC rules, and the regulatory of restrictions of certain U.S. states and other jurisdictions.
About the Universal Protocol Alliance
A coalition of cryptocurrency companies and blockchain pioneers, the Universal Protocol Alliance seeks to accelerate the adoption of blockchain as a mainstream financial technology by making digital assets more accessible, secure and convenient to own. The Alliance consists of Uphold, Brave Software, Cred, Blockchain at Berkeley and FBG Capital.
Cred is a decentralized global lending network that facilitates open access to credit anywhere and anytime. Founded by former PayPal financial technology veterans, Cred is a leader in the lending industry, specializing in blockchain technology. Cred is set to revolutionize the lending industry by merging an established global lending network, a diverse team of entrepreneurial leaders, machine learning, and the power of blockchain technology. To learn more, visit www.mycred.io.