The crypto exchange offering wallet services Huobi has closed a partnership with the decentralized crypto lending company Cred in order to offer user’s interest on their holdings.
The announcement that Huobi Wallet is going to integrate Cred’s borrowing and lending services was made on April 1. Huobi Wallet supports more than 1,000 crypto assets, out of which 8 are stablecoins, in 200 regions and countries. A list with the supported crypto assets for the program wasn’t provided yet, but it was mentioned that Bitcoin (BTC), Universal Dollar (UPUSD) and Ether (ETH) will be included.
Pledged Assets Will Have a Monthly Interest
Cred is based in California and a licensed lender. It was also a founding member for the Universal Protocol Alliance of crypto and blockchain companies. What should also be mentioned about it is that it’s backed by Binance, FBG Capita, Blocktower and Arrington XRP. Its CEO, Dan Schatt, said Cred is very keen to provide its decentralized financial services during so unstable financial times.
Together with Cred, Huobi will offer its users the ability to lend crypto services while receiving a monthly interest, plus the possibility to roll over pledged assets for certain amounts of time. There are no minimum requirements for participation to the program, whereas the interest will be paid in crypto assets and stablecoins. Holders of $150,000 in their wallets will also be able to join a special program and consult with Cred’s Private Client Associates.
Crypto Borrowing and Lending Gaining More Traction
The partnership between Huobi and Cred comes at a time when crypto borrowing and lending are gaining more traction in the crypto industry. Back in January, one of the fastest-developing crypto lender that has a coin loan origination of $4.25 billion, Celsius Network, made the announcement that it will implement compounding interest in the cryptocurrencies being deposited in its wallet. Some other big names in the crypto lending industry are Nexo, BlockFi, SALT Lending and YouHolder.