- The Litecoin Foundation has established a partnership with the financial services company Cred.
- Litecoin holders can lend their LTC and receive up to 10% annual interest.
A few hours ago, the Litecoin Foundation announced a strategic partnership with San Francisco-based crypto-credit company Cred. Cred manages a total capital of more than 300 million USD and is operating in more than 190 countries worldwide. From now on Litecoin owners can earn up to 10 percent interest on their funds staked.
Cred allows Litecoin to be pledged in an unlimited amount and without a minimum amount for a predetermined period of time. All interest rate negotiations can be conducted individually and the concluded contract can be adjusted. Cred cooperates with well-known partners like Bitcoin.com, Uphold or BitBuy, so that all wallet owners who hold Litecoin on these platforms can participate.
Cred describes that customers get the best interest rates when they use Cred’s platform-owned LBS utility tokens. If a customer borrows Litecoin in the amount of 1000 USD over a period of 10 months at an interest rate of 10%, then the lender receives guaranteed interest of 100 USD, regardless of how much the price of Litecoin has fluctuated during the period.
The income generated from the new partnership will be used for the further development of Litecoin and should drive the future adaptation. Charlie Lee, founder of Litecoin, as well as Alan Austin, director of the Litecoin Foundation, are enthusiastic about this new partnership:
In addition to Litecoin’s reliability, use for payments and excellent liquidity, the ability to earn interest at attractive rates through Cred’s platform further strengthens this use case. We are excited to be working with Cred to provide this offering.
Dan Schatt, CEO of Cred, describes that this step can further promote the acceptance and distribution of Litecoin:
We look forward to supporting the millions of Litecoin wallet holders with a more transparent, equitable set of financial services we have built, thanks to the advancement of blockchain technologies.
Schatt states that it is worthwhile to implement the new product from Cred directly in Litecoin wallets, as it can achieve far-reaching synergy effects for both sides. He used to work for PayPal and therefore knows how to support companies in extending the scope of their portfolio with smart payment plugins.
Schatt sees great potential in the cryptocurrency industry, but is rather reluctant to see Bitcoin or Litecoin as a store of value. He says Litecoin is more suitable for transactions, as it offers cheaper and significantly faster transactions than its big brother. Cred works with prominent custodians such as Ledger, Xap, Bittrex and BitGo.
Whether the new cooperation will be successful remains to be seen.
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Litecoin achieves great progress with MimbleWimble
David Burkett, the chief developer and main person responsible for the MimbleWimble (MW) project at Litecoin, recently achieved a breakthrough in the further development of the project. He describes that he has found a way to implement non-interactive transactions in MW.
Burkett states that his proposal greatly improves usability, since sender and receiver do not have to be online at the same time. In addition, it will reduce long-term maintenance requirements and improve compatibility with hardware wallets and other custody solutions.
The price of Litecoin follows the current market trend, falling by 3.28% within the last 24 hours to a price of USD 73.12.