One of the world’s most popular bitcoin wallets has been boosted by an integration with lending platform Cred. The partnership with Bitcoin.com Wallet, which boasts 11 million downloads, means that BTC and BCH holders can earn a passive income through lending out their assets. Moreover, they can claim the interest payments they receive in a range of digital currencies, including stablecoins. The integration between the crypto finance platform and Bitcoin.com arrives at a time when interest in cryptocurrency lending is at an all-time high.
A Cred spokesperson told Insider Monkey: “Cred’s partnership with Bitcoin.com proves that Bitcoin innovation doesn’t have to occur at the protocol level. By building lending capabilities directly into the Bitcoin.com Wallet, we’ve provided a way for BTC and BCH holders to earn an attractive ROI, while operating within a familiar and secure environment.”
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Crypto Lenders Bypass Gatekeepers
In the traditional financial world, credit is controlled by agencies such as Equifax (NYSE:EFX) and Experian (LON:EXPN), whose scoring system determines who’s eligible for a loan and who isn’t. In the world of cryptocurrency, things work a little differently. Due to the design of crypto assets and blockchain, tokens can be pledged as collateral and used to obtain fiat currency loans. They can also be loaned to borrowers via platforms such as Cred, earning the lender a fixed fee for the duration of the loan.
The integration of lending directly into Bitcoin.com Wallet enables bitcoiners to start earning yield on their holdings directly within the iOS and Android app. “At Bitcoin.com, we strive to offer our customers with the top-tier blockchain services,” explained the company’s Head of Product, Corbin Fraser. “Through Cred, our customers will continue benefiting from earning interest on their crypto via a secure and licensed financial services platform.”
Bitcoin.com is a news site, wallet service, mining pool, and cryptocurrency hub for supporters of Bitcoin (BTC) and Bitcoin Cash (BCH). Its Executive Chairman and former CEO, Roger Ver, remains one of the most controversial figures in the industry, although he has taken a step back from the limelight, and is now content to advocate his favored strain of bitcoin – Bitcoin Cash – from afar. The Bitcoin.com Wallet has proven to be one of the company’s most successful products to date, adding new features such as the ability to buy bitcoin with credit card, and now a lending portal administered with the support of Cred.
Lending Platforms Compete for Market Share
Decentralized exchanges (DEXs) and centralized exchanges (CEXs) have been engaged in a fierce battle for market share this year, with the growth in decentralized finance generating huge volume on Uniswap and Mooniswap. A similar battle is being fought between centralized lending platforms – including exchanges – and defi platforms to offer the highest APR. Cryptocurrency holders have found themselves jumping from platform to platform, chasing down the greatest yield.
Cred has built its crypto lending business through integrating with leading wallets including Bitcoin.com Wallet, Huobi Wallet, and Edge. Cryptocurrency holders – or hodlers – have no desire to sell their assets in the near future. Lending provides them with a means to grow their holdings without participating in the high risk game of trading.