This is yet another milestone for Ripple and XRP holders. Cred, a loan provider that allow users to borrow USD loans against different crypto assets have secured a $300 million facility that will enable XRP owners to secure loans against their coins. The crypto based loaning platform has the backing from Binance, Signal Ventures, DHVC and 15 other investors.
Going forward, XRP owners who have subscribed to the platform don’t have to sell their coins and incur unnecessary tax charges. Instead, they can link their XRP and store them securely at Cred and in return the platform avails them with Crypto-Line of Credit (C-LoC). With C-LoC, XRP coin owners can easily view their borrowing power and it all depends on the amount of coins they keep at the platform. At the moment, users can easily borrow as much as $100,000 and all this without the need of selling their coin holdings while saving the hassle of filing tax returns.
In a statement, the co-founder of Cred, Dan Schatt, said he was thrilled to make the announcement and they will continue offering the same rate to their clients similar to those availed to Ethereum and Bitcoin holders.
“We’re thrilled to offer XRP holders the same low rates and convenient liquidity services as ETH and BTC holders. We’re looking forward to continuing to support our many partners who are integrating the Cred platform for the benefit of their users.”
Recently, Cred partnered with DCH who have offices in the US, Australia and Korea. The firm is a blockchain and cryptocurrency advisory service with experience in technology and asset management. This move will see cryptocurrency owners across Australia and Ocenia region get access to better liquidity. While this partnership is welcomed, Cred did complete their Australian Credit License application as they work towards providing loans for normal consumers. At the moment, the firm offers loans to businesses but as the license is under review, Cred is “open for business” for investment and business loans.