Following this announcement, the partnership will allow borrowers to take out crypto-secured loans, spendable on a credit card, and lenders to earn yield. The Uphold proposal was approved by the Exactly Protocol DAO, and it was designed to bring customers an optimised credit card backed by crypto assets, deliver increased liquidity to the Exactly Protocol, as well as integrate the card into Uphold.
The service is expected to initially be available to users and customers in the region of Latin America. In addition, both companies will continue to focus on meeting the needs, preferences, and demands of clients in an ever-evolving market while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
According to the official press release, the solution combines the first fixed-rate loans in DeFi with an improved crypto-enabled credit card. At the same time, it is expected to solve a major pain point for customers who want to make daily purchases, leveraging the value of their crypto without having to sell their holdings. Users will be given the possibility to receive a credit card with repayments split into fixed-rate installments as well.
In addition, Uphold intends to invest in EXA governance tokens and serve as a CeFi distribution partner. The company also expects to embed the service into the Uphold App on a white-label basis in regions outside Europe and North America. Businesses and institutions that build on the Uphold platform will also be able to offer the service to their customers in certain markets in a secure and efficient manner.
The initiave will provide customers with collateral and credit limit (the deposited assets will act as collateral, determining the user’s credit limit, and the deposits made into the Exa App will be allocated to Exactly Protocol’s lending markets, generating variable yield based on borrower demand), onchain borrowing (when a customers makes a purchase using their card, the Exa App will borrow the required amount on their behalf from Exactly Protocol’s fixed-rate lending markets, while the borrowed funds are converted to USD and sent directly to the merchant), onchain lending and yield (lenders who wish to supply funds will be enabled to do so in the protocol), as well as installments and repayment.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now