Crypto borrowing and lending platform Cred has joined Visa’s Fintech Fast Track program to further the adoption of DeFi loans.
The decentralized finance platform Cred will now use Visa’s extensive reach to further push the adoption of lending and borrowing of digital assets.
On Sept. 8, Cred announced that it has joined the international payment behemoth Visa’s Fintech Fast Track program — a program that helps payment startups use Visa’s network, toolkits and expertise to build payment solutions.
Cred will use the payment giant’s reach and security to popularize decentralized lending and borrowing of cryptocurrencies, or crypto loans.
Cryptocurrency lending and borrowing shot to popularity recently with the launch of the Ethereum-based lending platform Compound. At the time of writing, the total value locked in lending and borrowing protocols makes up more than 40% of the total value locked in DeFi.
In the first week of June, the total funds across all DeFi applications amounted to only $1 billion. After three months, however, the DeFi market today holds more than $7.9 billion, dropping by $1.6 billion from its all-time high of $9.5 billion during the first week of September.
Cred CEO and founder Dan Schatt told Cointelegraph that Cred is working to bridge the divide between this rapidly evolving DeFi space and the centralized finance system so people may benefit from the best of both worlds.
Starting later this year, Cred will work with Visa and its banking partners to allow its users to receive interest payouts directly into their bank accounts in local fiat currencies, Schatt said. While initially, the feature will be restricted to certain areas, Cred will continue to collaborate with banks in various jurisdictions throughout 2021, he added.