TrueUSD Stablecoin Holders Can Get 'Up to 8%' Interest Via CredEarn

Published on by Coindesk | Published on

Holders of the dollar-pegged stablecoin TrueUSD can now leverage their funds to generate returns under a new partnership between the token's developer TrustToken and crypto lender Cred.

The deal will enable TUSD holders take part in the CredEarn program, which pays back interest for loans of digital assets to Cred's platform.

David Steinrueck, marketing and communications manager with TrustToken, told CoinDesk that individuals who send their funds to Cred can earn "Up to 8 percent" in annualized returns.

Under the terms of the partnership, TrueUSD holders must transfer their tokens to a CredEarn wallet for a minimum six-month commitment.

"If you lock your funds in here, you'll get an 8 percent return, you're locked into that rate and after a 6-month rate or quarterly."

CredEarn will, in turn, lend the assets to miners, investment funds, retail investors and other digital asset companies "On a guaranteed and collateralized basis," though it will not lend to short-sellers.

Returns from these entities will be passed on to holders.

BitGo will provide insurance on customer assets up to $100 million through its separate partnership with Lloyd's of London.

The new CredEarn offering sounds similar to BlockFi, another crypto lending startup which announced a crypto deposit account at the beginning of this month.

The company said users would be able to earn 6.2 percent interest on their holdings annually, though it later cut this figure for its institutional investors.