Cred secured a $50m global credit facility to enable its user to borrow against the cryptocurrency.
The crypto-backed lender Cred has announced it will now include the cryptocurrency Ripple as collateral for its loans in its bid to make credit more accessible.
Similar to the newly launched platform Nebeus, Ripple holders who anticipate a bull run can invest in the cryptocurrency long term and avoid having to sell or pay the required tax by acquiring the loan. The process involves the borrower depositing the collateralised cryptocurrency before receiving the loan. Once the loan and interest are repaid, the individual is then sent back the coins.
The development follows Cred securing a $50m credit facility to incorporate Ripple among the already accepted Bitcoin and Ethereum as collateral.
Users can use their cryptocurrency to acquire up to $25m in credit depending on the value of collateral on offer. The interest rates for loans up to $75,000 is 5.99 per cent and then 11.99 per cent for loans up to £25m. According to Cred’s website, a $150,000 loan will require nearly 46 BTC which is currently worth just shy of $300,000 so it would be a significant loss if someone was to miss a payment.