Celsius Network, a cryptocurrency lending and borrowing platform, has partnered with TrustToken, the team behind dollar-pegged TrueUSD (TUSD), to offer up to 10 percent interest on four new stablecoins.
In a push to engage more investors, holders of TrueUSD can now leverage their funds to generate annual returns under the new partnership between the token’s developer and the crypto lender. TrustToken has similar arrangements with Cred, which also offers a decentralized lending platform that allows customers of stablecoin issuers, exchanges, and wallets to earn up to 10 percent interest on .
“Stablecoins built on the blockchain allow us to move dollars in the form of digital tokens over the internet, and that enables us to earn more for our borrowers from all over the world,” said Alex Mashinsky, CEO of Celsius Network.
Although they didn’t reveal much details about the deal specifications, under the terms of the partnership with Cred TrueUSD holders must transfer their tokens to a wallet and commit their funds for a period of six months. Interest is be paid on a quarterly basis and users will have the option to auto-renew for additional 3 months periods after their initial term expires.
Celsius is also expecting the addition to bring more liquidity to its platform. The startup lends the assets to miners, investment funds, retail investors and other digital asset companies “on a guaranteed and collateralized basis.” It also allows clients to access several services such as instance depositing digital assets in the Celsius wallet and using their cryptocurrencies as collateral to get fiat loans. 80 percent of returns from these entities are passed on to holders, the company says.
Previously, Celsius has supported other eight stablecoins including Coinbase’s USDC, Gemini’s GUSD, and Tether’s USDT.
“TrueCurrencies already offer transaction speeds beating traditional money transfers and the lowest costs of any stablecoin, but to grow adoption all cryptocurrencies need to grow utility,” adds Tory Reiss, TrustToken Co-founder.
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