Uphold and Cred partner to offer earning and lending products
Digital payments startup Uphold is launching new lending and earning products in partnership with crypto lending platform Cred that will allow customers to earn interest with a new stable coin.
The new US dollar-pegged stablecoin, Universal Dollar, will offer bank-like services to consumers. Holders will be able to opt into a program called Uphold Earn that allows them to earn interest as high as 5%.
Set to rollout in mid-November, the idea is that customers who convert dollars into Universal Dollars receive interest when investing in the company.
In addition, Uphold’s Borrow product will allow consumers to borrow funds against the digital assets stored with Uphold, with loans ranging from $1,000 to more than $200,000.
Uphold co-founder and CEO JP Thieriot said that 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.
He added: “These new products mark the first time that we’ve seen fiat currencies, stablecoin currencies and blockchain working together to benefit a mass consumer market.
“Thanks to the efficiencies of blockchain, the unique properties of crypto assets and smart contract infrastructure, Uphold and Cred customers can benefit from a more efficient, transparent and equitable financial services structure.”