Earn up to 10% annually from digital assets
CredEarn*, a new product from borrowing and lending specialist Cred and available exclusively through Uphold, allows Uphold members to earn an annual return of up to 10% from their digital assets.
In the first few days of launching the product, Uphold customers from over 90 countries placed over $200,000 of digital assets with CredEarn (including BTC, XRP, ETH, USD, EUR and even gold).
Given the fall in crypto values, our community has been vocal about their desire to hold onto their digital assets while at the same time earning a return on them. Currently, Uphold members outside the United States can put their assets to work through CredEarn, but Cred and Uphold plan to make CredEarn available to US residents soon.
To get started, activate CredEarn in your Uphold wallet. Simply go to https://uphold.com/en/credearn with your Uphold credentials, provide the code which you’ll receive on your mobile phone, and agree to the terms and conditions. You will then be taken to your CredEarn dashboard, where you can decide which Uphold assets you want to lend to the Cred program.
Loan assets are swept from customer accounts on the 1st and 15th of every month. For example, if you pledge assets in the week of Jan 28th, funds will be removed from your Uphold wallet on February 1st and you will start earning interest that day (February 1st). If you pledge on February 5th, the assets will be swept from your account on the next funding date - February 15th - and you will start earning on Feb 15th.
Interest is paid in USD and future iterations will pay interest in stablecoin. Annualized returns vary by asset class loaned:
10% on Bitcoin - that's an extra $1,000 every year for the average Uphold user with $10,000 equivalent of BTC in their wallet;
5% on XRP;
3% on ETH; and
For anyone not yet ready to invest in cryptocurrency, earn 3% interest on your holdings in US Dollars, Euros or gold.
How does Cred make these earnings possible?
Unlike traditional financial institutions that must lower their yields to accommodate their significant overheads, Cred is a next generation financial services firm that is unencumbered by legacy financial structures.
Founded by ex PayPal executives, Cred leverages blockchain technology, advanced crypto hedging capabilities, AI and the latest risk, identity and credit services to offer lower cost borrowing and lending. These efficiencies allow Cred to return more yield for Uphold customers. The CredEarn returns contrast with those available from more traditional financial institutions (which can be as low as 0.1% yield and offer credit card debt at 30%).
Cred can reduce traditional lending spreads and manage its risk through its asset-backed retail lending services and strict corporate underwriting criteria. Cred ensures the principal is fully hedged and lends the funds to retail and corporate institutions.
‘We’re thrilled to offer consumers the opportunity to earn interest on their digital assets and fiat currencies,’ said Dan Schatt, Co-founder and President of Cred. ‘In a bear market, customers benefit from the liquidity they receive when paid interest in USD or Stablecoin. When the bear market turns bullish, customers continue to earn interest but now also benefit from the full upside on the amount of crypto they originally committed.’
*CredEarn is a third party product offered by Cred LLC. CredEarn is not a deposit relationship and is offered to customers outside the United States pursuant to Regulation S of the Securities and Exchange Commission. Non-US customers will be required to affirmatively opt in to the service and additional terms and conditions will apply. Interest accrues on amounts actually borrowed by Cred, and is calculated on a simple interest basis based on the number of days and amount of the assets borrowed. As a result not all customers will be able to participate and not all funds may be borrowed.