Although Uphold is somewhat overlooked by novice cryptocurrency users, the company is working hard towards revolutionizing financial services within this space. As such, their new partnership with Libra Credit will look to decentralize access to credit anywhere at any time.
Uphold Taps a new Market
While most people know Uphold for its cryptocurrency trading services, the company also actively explores other markets as well. When it comes to lending and accessing credit, the new partnership with Libra Credit will allow customers with an opportunity to buy everyday items using standard credit products.
All of these credit products will be collateralized by crypto assets. That in itself is a very interesting take on things. By taking this approach, the company seeks to further bridge the gap between traditional finance and cryptocurrencies. Uphold members will also be given access to an option to borrow against their existing portfolio and tap new ways of diversifying their holdings.
Libra Credit President and co-founder Dan Schatt adds:
“Most people have never had an opportunity to borrow and lend against crypto assets. 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.”
Borrowing and lending against existing crypto assets is a relatively new business model, and more credit/liquidity offerings for the cryptocurrency community will help the industry grow as a whole.
Although this new business model may not appeal to everyone, it is an interesting social experiment regardless. Obtaining low-cost credit for existing cryptocurrency holdings is something the right people can benefit from over the coming years.
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