CredEarn Program By Cred Offers TrustToken Holders Of TrueUSD Stablecoin Up To 8% In Interest
CredEarn Program Offers Holders Of TrueUSD Stablecoin Up To 8% In Interest
Holders of TrueUSD (TUSD), a stablecoin that is pegged to the U.S. dollar can invest the cryptocurrency with Cred, a crypto lender who has partnered with TrueUSD's developer, TrustToken to enable its investors to earn 8 percent in annualized returns, according to reports published March 26, 2019.
Partnership To Enable TrueUSD Holders To Invest In CredEarn
Based on the report, a partnership between TrustToken and Cred will enable people in 29 U.S. states who hold TUSD to invest in a CredEarn program.
The assets can yield an annualized return of 8 percent, and the terms of the service require that investors must be willing to leave their tokens in CredEarn's wallet for at least 6 months in order to earn interest on a quarterly basis.
Also, customers can only renew their account three months after the expiration of their initial term.
BitGo To Insure TrueUSD Tokens For $100 Million
BitGo, a Blockchain security company through its partnership with Lloyd's of London will insure these virtual currencies at a $100 million.
Likewise, BitGo Inc. and BitGo Trust Company, the different arms of the company will store these assets separately.
While revealing how the tokens will yield profits that will be used to compensate investors, David Steinrueck, marketing, and communications manager with TrustToken said the digital assets will be lent to retail investors, miners, investments funds, and other virtual currency companies.
Tokens To Be Lent On A Collateralized Basis
In the same vein, the funds will be issued on a guaranteed and collateralized basis in order to mitigate risks. Profits made from this lending will them be passed on to investors who are a part of the CredEarn program.
Steinrueck also made comparisons between the CredEarn's program and that of a bank account or a certificate of deposit (CD) investment. In his opinion, there is still a certain level of risks involved in the program, but they are lesser since this is an investment.
“But there’s not a scenario here where they’ll say ‘oh we’re only giving you 7 percent or 5 percent,’ you’re locked in,” he added.
The manager further outlined that customers can make an evaluation in order to ascertain if the people backing the platform have insurance if they can be trusted to generate the promised returns and if they can seamlessly handle the consumers and the load process.
He, therefore, concluded that any risks from the consumer's perspective would stem from the evaluation of participating companies that are providing accounts.
Asides from Cred's proposed program, Bitcoin Exchange Guide on March 5 also informed that BlockFi, a cryptocurrency startup has launched the service, BlockFi Interest Account (BIA) that will enable customers to gain compound interest on their investment.