Uphold To Bring Crypto-Backed Credit To Members With Libra Credit Partnershipbr>
Uphold, formerly Bitreserve, is a cloud-based financial services platform enabling users to convert deposits to their account via bank account, credit card, and cryptocurrencies into reserve-backed currencies and commodities. Uphold claims to have facilitated over $2 billion in transactions across 184 countries, in more than 30 supported currencies and four commodities.
Founded by former PayPal financial technology veterans, Libra Credit is an ethereum-based lending network that facilitates open access to credit anywhere and anytime. Libra Credit offers a seamless digital lending process that can be completed in five steps: application, verification and credit assessment, confirmation, collateral deposit, and disbursement. The platform focuses on a dual-credit risk scoring mechanism that considers the creditworthiness of the pledged collateral as well as the credit information of the borrower. Borrowers will be able to pledge any crypto-assets as collateral and receive loans in their desired asset.
The partnership will enable Uphold users to buy everyday items using standard credit products, collateralized by crypto assets. Uphold members will also be able to borrow against their existing crypto assets and to hedge and better diversify their holdings. Uphold is also planning to list Libra Tokens (LBA) on its platform.
“Most people have never had an opportunity to borrow and lend against crypto assets,” said Dan Schatt, co-founder and President of Libra Credit. “In a world where everything is becoming tokenized, valuing crypto assets as an asset class will strengthen the crypto economy and offer much welcome liquidity to Uphold members.”
“This isn’t an incremental advance over what’s out there. It’s a massive paradigm shift. Libra Credit is bringing the credit market to an asset class that will grow to trillions in the next few years,” said Richard Liu, FBG Partner and investor in Libra Credit. “You need a seasoned team to pull this off, and these guys know how to execute. We’re thrilled to be supporting Libra Credit and their partnership with Uphold for the long haul as the implications for financial access are profound.”
Last month, Uphold annonced that it will be acquiring New York-based broker-dealer JNK Securities to expand its service offering. Uphold and JNK have filed an application with the US Financial Industry Regulatory Authority (FINRA) for the approval of the change of ownership and business expansion. Once approved, Uphold will file a Form ATS with the US Securities and Exchange Commission (SEC) to begin operating an alternative trading system (ATS).