Cred: Upgraded Banking Solutions Powered By Blockchain Technology

Nowadays, it is feasible to state that decentralized finance is gradually taking over services that before were monopolized by the traditional banking system. However, we can’t determine how long it will take until people start looking at it as an everyday thing, just like Bank of America, Visa, or PayPal, for example. Until that happens, however, several platforms are trying to build this bridge for the future, using blockchain technology to provide real-world solutions. Cred is a company that believes banking and sharing don’t necessarily have to be exclusive ideas anymore. The platform is unique, leveraging the blockchain to substitute traditional banking tools for better.

How Does Cred Work?

How Does Cred Work?

Cred is a decentralized ecosystem structured on Ethereum, designed to provide several financial services worldwide. It serves as a bridge between the steady banking system and the innovative solutions of the blockchain (plus all benefits such as security, privacy, etc.).

Borrowers can take loans without necessarily have to cash out. Cred turns the digital assets deposited into fiat currencies like the US dollar, for example, which means these loans won’t be limited to a digital environment, but usable for real-world situations.

Further reading: dForce: Chinese Endeavor Building A DeFi Juggernaut

Cred lending products have several use-cases in everyday life, such as providing credit for retail businesses or even help customers who wouldn’t even be suitable for a banking loan structure, such as crypto investors using tokens as collateral, first-time borrowers, and people living in developing economies worldwide.

The company also upgrades passive income strategies, by allowing users to pledge their digital assets for a trusted-partner network (liquidity), accruing fixed rates over time and secured from market potential volatility. Hence, high yields don’t linger to show, as holders can earn up to 10% interest on their digital assets.

Get started with Cred for FREE over here!

Dig Into It

When customers apply for a loan, they can also have “Revolving Line of Credit“. It means that he/she can draw out the value of the loan as long as the pledged crypto assets stay in the ecosystem.

So far, borrowers can use Bitcoin (BTC), Ethereum (ETH), Lumen (XRP), and Cred (LBA) as collateral. The possibility of using crypto as collateral to withdrawal real-world cash is something outstanding, especially when you consider the conditions of traditional banking, that most of the time is quite inconvenient.

Learn more: MBN Global: Decentralized Solution For Risk Management

To help to further security measures, the platform requires at least 24 hours until withdrawals are initiated on-chain. This is an effort to protect customer funds and enhance effectiveness in procedures, so the transactions within the network are processed periodically.

Understanding CredEarn

The video above provides additional information on the CredEarn.

CredEarn is an exclusive financial product within Cred’s ecosystem, where users can users holding digital assets have the opportunity to pledge them to earn valuable interest.

These interest values can be paid in both fiat currency or cryptocurrencies such as BTC, LTC, ETH, and LBA, for example.

The goal behind the idea is to provide customers with a system that unites the best of traditional banking with the best of blockchain, resulting in a unique pledge system for annual interest returns.

Native Token

More on the LBA token!

Cred has a native utility token, the LBA token. This exclusive token empowers users with privileges within the network, such as better interest rates, higher returns, and priority support.

Customers who choose to pledge LBAs to earn yield are exposed to higher interest rates across the network’s partnerships.

Further reading: What Is Bitcoin Cash And Where To Buy It?

LBA holders also have better borrowing conditions, as they will have discounted interest rates for using the native token as collateral for a loan.

Another privilege is regarding the use within the community, which includes live support, invitations for exclusive events with other LBA holders, and personal meetings with Cred’s team.

Cred is still upgrading the experience continuously, so token holders will have even more beneficial add-ons and exclusive features.

Who Is Behind Cred?

Who Is Behind Cred?

Based in San Francisco (CA), Cred was co-founded by PayPal veterans Dan Schatt (current CEO) and Lu Hua.

Despite being brand-new amid the crypto scene, the project successfully partnered with industry-leading players such as Bitcoin.com, Edge, Uphold, Huobi, Litecoin Foundation, Bitbuy, TrustToken, and many others.

Conclusion

Providing services for customers located in 183 countries all over the globe, Cred’s mission is to provide an innovative platform for those borrowers whose needs don’t fit in the standards of traditional lending markets.

The company is not a bank but uses blockchain technology aligned with the right legal infrastructure to provide a global alternative for certain banking services.

Cred customers have fast access to credit without needing to cash out, using cryptocurrencies as collateral to withdraw real-world fiat currencies such as Us dollar or Euro. It is also possible to earn high yields by pledging cryptocurrencies to a trusted-partner network, accruing interest over time with returns up to 10%.

The platform leverages the potential of blockchain to solve real-world issues until decentralized finance achieves its pinnacle, replacing the current financial system with a new global financial infrastructure.