Cred (LBA), a decentralized lending startup formerly known as Libra Credit, has partnered with TrustToken, the team behind dollar-pegged stablecoin TrueUSD (TUSD) to offer 8% interest when the token is stored on the Cred platform.
— Cred (@ihaveCred) March 26, 2019
According to the announcement, TrustToken chose Cred’s earning platform due to its experience with tokenized lending and borrowing, in addition to the team’s credibility and track record.
“We are excited to partner with Cred as the trusted earning solution for TrueUSD users,” said Tory Reiss, TrustToken’s co-founder and head of product and business development.
“Over the last year, we’ve been focused on building the bridge between traditional finance and the digital asset ecosystem, with TrueUSD as the first proof of concept. As we move into our second year of operation, our goal is to provide more valuable opportunities to utilize these assets. We’re happy to be advancing this mission together with the Cred team!”
Cred offers a crypto custodian insurance policy of up to $100 million through BitGo and will pay out the interest in TUSD quarterly with the option to auto-renew.
TrueUSD is also available as a collateral and repayment option on Nexo’s (NEXO) crypto-backed loan platform. Investors can borrow against TUSD with a 95% loan-to-value (LTV) ratio, in addition to funding existing loans. Additionally, Nexo offers a 6.5% annual interest for holding TUSD on its platform.
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.