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Crypto Wallets Extend Lending and Staking Services to Customers as Competition Increases

Crypto Wallets Flock to Cred as Competition Heats Up
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As the competition in the crypto wallet market increases with more startups entering the market daily, startups are flocking towards lending companies like Cred to expand their conventional offerings. Crypto wallets are now aiming to offer a wide range of services to their customers without ever leaving the application to retain its customer base.

Please Note: This is a Press Release

Crypto wallets are expanding lending and staking offerings to its customers as the competition increases and the market becomes more dilute. An unprecedented 3.5 million crypto wallet application downloads were reported in July 2020, an uptick of 81% compared with the same period last year. In contrast, the number of active users increased by 110 percent between 1 January and 19 August 2020. The rise in the number of crypto app downloads was noticed right after countries began implementing quarantine measures in the face of Covid-19.

Klever app, a 4th generation crypto wallet, partnered with Cred to offer in-app lending and staking experience to its 800,000 users. The partnership will enable Klever customers to pledge digital assets and receive interest on their holdings without leaving the Klever wallet application. Bitcoin.com also partnered with Cred to offer lending and staking facilities to its 11 million users as crypto lending gains traction amongst mainstream crypto consumers. Cred allows customers to pledge one asset and receive interest in another asset allowing customers to diversify their cryptocurrency holdings.

“Klever was made to enhance the financial freedom of our more than 800k users globally by putting the keys to their funds in their hands and empowering them to become smarter investors. Our partnership with such a well-established and reputable fintech firm like Cred further advances these goals,” stated Dio Iankiara, CEO and Co-Founder of Klever.io.

The agreement between Klever and Cred will also allow Klever users to easily be able to swap Cred’s LBA utility token within the Klever app. LBA would be introduced to the Klever swap platform with five direct trading pairs in BTC, KLV, TRX, ETH, and USDT. Users may minimize swap costs through using or keeping KLV in their account, where the advantage of LBA holdings is that the consumer enjoys competitive interest rates when accessing and registering for Cred’s lending program.

Klever is currently implementing the three most popular blockchains in the world, including Bitcoin, Ethereum, and TRON blockchain, and thousands of ERC20, TRC10, and TRC20 tokens built on top of these chains. Most of the cryptocurrencies supporting these public chains will be eligible for borrowing and staking with Cred.

Passive Yields – Boon Amidst Global Crisis?

Cred enables individuals to gain interest regularly, where consumers can even receive compound interest periodically based on their holdings. Cred users can pledge coins such as BTC,  ETH, USDT, and a multitude of other crypto assets. There’s even a Cred calculator on the Cred website that shows people how much they can receive depending on the program they select.

Notwithstanding a few of the risks involved, lending interest rates and compounded earnings are far higher than conventional financial products today. Another critical point is that people are on-boarded in the crypto world much faster than the conventional financial system. With negative interest rates in Europe and Japan and printing of money by central banks globally investors fear that the economy is reaching the point of stagflation.

With high barriers to entry in the traditional banking system, people are now opting for different alternatives with higher yields. In DeFi, individuals do not have to go through a bank to gain access to vast capital, lend money, or collect large yields from any of these products. Most people store their cryptocurrencies for extended periods of time but now many people are seeing value in putting their crypto to use by receiving cash flow, especially in a global pandemic and recession.

Individuals Living off Borrowed Money

The Covid financial dilemma is that many young adults have now reached a horrible economic situation, whether calculated by the general degree of economic turmoil or by more precise metrics such as debt levels and shortage of liquidity. The use of alternative financial resources, including payday lenders, pawnshops, high-interest car loans, rent-to-own housing financing, and dependency on tax refunds to make ends meet, are all seen in the numbers, with 43% showing the use of high-interest loans and liquidity alternatives.

About a third (37%) of the NFCS results revealed that they could not come up with $2,000 to fulfill an emergency within just a month, while more than half (53%) said they might not afford three months of expenses.  Recent research by the Federal Reserve has also highlighted the severity of this problem, with many Americans pointing out that they could not come up with a $400 unexpected cost.

Amidst this financial crisis with low-interest rates and a high rate of unemployment, crypto customers are increasingly opting for passive yields to hedge and protect their holdings against fears of stagflation. The consumer interest in lending and staking cryptocurrency holdings has skyrocketed after the coronavirus pandemic as consumers find themselves locked in their houses with diminishing income and savings.



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Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@blockonomi.com

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