The Ripple community gets great news as XRP holders will have access from now on to a $300 million loan facility from Cred.
The news is the latest in a load of recently important announcements which revolve around real-world adoption for XRP.
Collateralizing XRP for USD loans
In a recent press release that was published by Business Wire, Cred announced the launch of a new $300 million credit facility.
The statement reveals that holders of XRP can use the crypto as collateral to access loans.
Cred co-founder, Dan Schatt, said “We’re thrilled to offer XRP holders the same low rates and convenient liquidity services as ETH and BTC holders. We’re looking forward to continuing to support our many partners who are integrating the Cred platform for the benefit of their users.”
In a tweet posted by the company, Cred encouraged XRP users to enjoy this unique opportunity that the credit facility has to offer.
The XRP collateralized loans allow XRP holders to hold their crypto without any incurring tax and pay single-digit interest rates on loans.
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
Michael Arrington from Arrington XRP Capital says that the credit facility boasts Cred’s ability to tap into emerging market of crypto-backed lending.
He said, “As a Cred borrower, I appreciate how responsive Cred is to my needs. They continue to impress me with their ability to act as a trusted bridge between the traditional financial services ecosystem and the crypto community. Cred is successfully building the next generation of lending and earning products, and their recognition of XRP as an asset class is important.”
Enhancing XRP utility
Ripple has been focused on increasing the utility of its token, and just recently Weiss Ratings said that XRP is one of the best options that investors have in the crypto market.
Changelly crypto exchange platform has recently launched credit/debit card purchases for XRP. This development has opened up the XRP/fiat trading market to potentially 3.5 million users.
