Auditing Firm PwC Teams Up With Lending Startup ‘Cred’ To Develop Stablecoin

Auditing firm PricewaterhouseCoopers (PwC) has partnered with Cred, a decentralized lending startup, which is currently developing a stablecoin that is pegged to the U.S. Dollar as they look to challenge Tether, the leading stablecoin.

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Auditing firm PricewaterhouseCoopers (PwC) has partnered with Cred, a decentralized lending startup, which is currently developing a stablecoin that is pegged to the U.S. Dollar as they look to challenge Tether, the leading stablecoin.

Partnership will lead to advanced stablecoin technology

The partnership between the two companies is aimed at boosting trust in the cryptocurrency space and attracting more traders by advancing stablecoin technology.

Cred was founded by former PayPal technologists Dan Schatt and Lu Hua, and the company is looking to offer open access to cryptocurrency-based credit options to users all over the globe.

So far, the company has launched shops in Munich, San Francisco, Shanghai, Sydney, and Singapore, and has used blockchain to secure more than $250 million lending capital for its clients.

Schatt stated that this is the first time that PwC is partnering with a company in the blockchain and crypto industry.

The partnership is aimed at boosting the current stablecoin market that is pegged to the U.S. Dollar. Schatt admitted that volatility of cryptocurrencies still remains one of the biggest problems facing cryptos.

PwC will offer its expertise to help Cred in developing a more rigorous standard for stablecoins which can provide 100 percent transparency and value substantiation.

According to PwC, such standards would allow stablecoins to become fully auditable.

With more stringent standards, the company is confident that they will usher in the next 100 million users into the cryptocurrency world.

PwC is also looking to provide education to both investors and startups by discussing how technology can be moved forward. They will offer insight on crucial factors such as security, risk management, governance, and control which would improve the current industry practices.

PwC’s U.S. blockchain and cryptocurrency leader Grainne McNamara stated that the stablecoin developed by Cred would go a long way in bringing further development to a quickly developing asset class with an increased level of confidence.

Schatt stated that a stablecoin that is transparent and tied to the U.S. Dollars would be a very huge confidence booster.

For those looking to get out of a rapidly depreciating currency, Cred’s stablecoin would be a perfect option as it would give users a return of between 2-5 percent.

Cred further developing its crypto lending service

Schatt also talked about the company’s crypto lending service. He stated that they are currently working providing users the ability to borrow crypto in the same way they would borrow fiat.

Since most banks don’t recognize crypto as an asset class, they generally do not provide lending services for the currency. Cred believes that more ways should exist for lending funds to companies.

Schatt explained that lending in crypto is the driving force behind their drive to amass funds for its clients.

He explained that even though credit and background checks are important, the company’s procedure for securing loans is much easier due to the fact that cryptocurrencies have the same properties all over the world.

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