Crypto Platform Uphold Introduces Lending And Borrowing Productsbr>
The first product, Uphold Earn, will function like a traditional banking product and will allow customers to earn interest on Universal Dollar (UPUSD), a stablecoin developed by the Universal Protocol Alliance. UPUSD is a fully-transparent, digital asset that is collateralized 1-to-1 with US dollars to be held at US domiciled, FDIC-insured banks. Customers who convert dollars into UPUSD can custody their holdings with Uphold, and earn up to five percent in interest.
The second product, Uphold Borrow, will allow customers to take out loans anywhere from $1,000 to $200,000 against crypto assets held on Uphold’s platform, which claims to have powered more than $4 billion in transactions across 184 countries.
“Uphold Borrow draws on Cred’s quarter-billion-US dollar credit facility, offering low-interest rate, revolving lines of credit,” Uphold said. “Customers and businesses no longer need to worry about selling their crypto assets, instead, they can receive US Dollar loans, collateralized by their crypto assets held at Uphold and made available to a customer when a line of credit is paid off and closed.”
JP Thieriot, Co-Founder and CEO of Uphold, said that Uphold Earn and Borrow mark the first time that they’ve seen fiat currencies, stablecoin currencies and blockchain working together to benefit a mass consumer market.
“Traditionally, the average consumer has been wary of digital currency for two reasons: volatility and a fear that, if they lose their key, they lose their money,” Thieriot said. “Universal Dollar helps solve for both of these problems.”
The Universal Protocol Alliance, which was founded earlier this year by Uphold, Brave Software, Cred, Blockchain at Berkeley and FBG Capital, said last month that UPUSD will introduce user safeguards and benefits, such as a fully reserved, built-in loss recovery and optional custody of private keys; inheritability feature that allows users to nominate a beneficiary who can “call” the asset on account dormancy; and a “detachable” wallet that reduces exchange risk.
“Up until now, the rate you receive on your loan has been predicated on which country you live in, who you bank with and the credit rating you receive,” said Dan Schatt, Co-Founder and President of Cred. “Thanks to the efficiencies of blockchain, the unique properties of crypto assets and smart contract infrastructure, Uphold and Cred customers can benefit from a more efficient, transparent and equitable financial services structure.”