Crypto lending startup Cred adds XRP as collateral option

Crypto lending platform Cred has announced that it now offering USD loan, collateralized by XRP – the cryptocurrency native to the Ripple network.

Previously Libra Credit, Cred is a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime based on the Ethereum blockchain. It is one of the founding members of the Universal Protocol Alliance.

The company explained that XRP holders will now have the opportunity to save their XRP long term without the need to sell or incur tax consequences.

“Cred is excited to announce that XRP can now be used as collateral to access our crypto line of credit (C-LOC). With the addition of XRP to Cred’s collateral options, XRP holders in need of liquidity can simply borrow against the token instead of selling,” it said in an online post.

“We’re thrilled to offer XRP holders the same low rates and convenient liquidity services as ETH and BTC holders,” said Dan Schatt, Co-founder of Cred. “We’re looking forward to continuing to support our many partners who are integrating the Cred platform for the benefit of their users.”

In its official release, Cred said that it has secured over $300 million in credit facilities available for lending, 3x more than the rest of the industry combined. It recently announced it will be powering the earn and borrow products for the Universal Protocol Alliance and Uphold.

“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,” said Mike Arrington, Founder of Arrington XRP Capital and well-known Ripple investor. “Cred is successfully building the next generation of lending and earning products and their recognition of XRP as an asset class is important.”