Cred (LBA), a decentralized lending startup backed by Binance Labs that was formerly known as Libra Credit, announce this week that it has secured $50 million in funding to begin offering USD loans collateralized by XRP.
Now @Ripple customers have the opportunity to hold their #XRP long-term without the need to sell or incur tax. XRP hodlers can borrow as low as single-digit interest rates when they visit https://t.co/ya5n9glsuD and click “Get Early Access.” https://t.co/NpMlUjOiW7 pic.twitter.com/kigkwoNNqh
— CRED (@ihaveCred) November 8, 2018
According to the announcement, investors can now access the liquidity of their XRP holdings without needing to sell or incur tax consequences. With Cred’s early access program, XRP holders in several countries can now borrow against their assets with single-digit interest rates.
“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.”
Notable Ripple investor, Mike Arrington, added, “Cred is successfully building the next generation of lending and earning products and their recognition of XRP as an asset class is important.”
This news comes just weeks after XRP was added to competing crypto loan platform, Nexo (NEXO), giving investors multiple options to take out a line of credit against their XRP holdings.
XRP is currently trading for $0.495 with a $19.90 billion market cap, making it the 3rd largest coin in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.
More: Cred Secures $50 Million Global Credit Facility to Lend Against XRP
Related: PwC Is Developing a New Dollar-Pegged Stablecoin With Cred
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.