Cred, a decentralized global lending platform that facilitates crypto-backed credit, is opening up its technology to third-party developers and companies to use. The company, founded by former PayPal financial technology veterans, revealed the rollout of its developer platform this week in a press release statement.
CredX, the developer platform, will enable any company or developer to turn their products into powerful financial applications for their customers. Also, crypto exchanges, merchant processors, miner service providers, and even traditional financial institutions could have access.
Crypto Lending as a Service
The CredX platform is a Crypto-Lending-as-a-Service (CLaaS™) that offers companies a rich set of customer experiences. Connection to the platform’s API will enable businesses to provide customers with access to low-interest loans using crypto as collateral.
The co-founder of Cred Dan Schatt said the technology could be particularly useful in the current bear crypto market. But companies can now leverage this platform to provide fair credit backed by crypto to their users.
“Lending and earning crypto are hard businesses to get right, particularly in a bear market,” he said. “A crypto custodian, wallet, merchant or exchange business can now offer their customers compelling credit and treasury management features built directly into their own apps, powered by Cred.”
Schatt also said businesses have options of using their own balance sheet. They can also take advantage of Cred’s facility to provide credit and earning services.
“Businesses can choose to use their own balance sheets, or leverage Cred’s to provide credit and earning services to generate revenue, customer retention, cost saves and receive an instant settlement,” he explained.
The platform also gives companies the opportunity to earn interests on bitcoin stored on Cred.
Transparency With Cryptocurrencies and Blockchain
One of the biggest allure of blockchain is its ability to ensure transparency. Scott Thompson, former president of PayPal, said that “the future of financial services require[s] a more open and transparent approach to FinTech, and Cred’s former PayPal team is well-positioned to meet a market need.”
Other companies have launched blockchain solutions to enhance transparency too. We recently reported the pilot blockchain-based project of Abu Dhabi National Oil Company (ADNOC) to streamline its accounting process. They are tracking transaction management for its commodities right from the oil wells through to its end customers.
CredX value proposition is, however, more than just transparency. The platform is offering to support the entire loan cycle user journey from onboarding to loan origination, disbursement to repayment. It will even support wallet management.
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