Stabilizing currency management: The next block in the blockchain?

There are a lot of things that have a process of accumulation. If I have not done this for many years in PayPal, I will not have such a deep understanding of the global financial field and realize that the combination of blockchain and finance can bring to our society. What is different.

At the end of 2017, the digital currency reached a peak, and many people entered the market with enthusiasm, but the ups and downs of the market also made it difficult for many people to accept. It is believed that digital currency can create wealth myths and possibilities, as well as doubts about the limits of use of digital currency.

In 2017, Lu and Dan, executives from the world-renowned multinational payment company PayPal, founded Cred as a credit lending institution that can use digital currency mortgages. Currently, the business has been operated in more than 100 countries including the United States, Argentina, and Venezuela. And received a very hot effect.

How does a traditional financial person know the blockchain? How does his sensitivity to the payment industry activate the digital currency investment market? In the face of the fiercely competitive digital currency lending market, how does Cred make users feel at ease in both security and revenue?

At 7:00 pm on April 9, 2019, Lu Hua co-founder and CEO Lu Hua was a guest at the ChainNode live room , and Xiao Xiao discussed in depth how Cred helped solve the lending problem in the digital currency world.


Things that have not been done on PayPal , I hope the blockchain can do it.

Speaking of the birth of Cred, it has to mention its strong founding team, the founding team mostly from the technical and financial executives of PayPal. Lu Hua, co-founder and CEO of Cred, has worked in Silicon Valley for more than a decade. He has been involved in financial technology-related companies, first in network security encryption algorithms, and later in the world-renowned multinational payment company PayPal, mainly responsible for PayPal. Bank transfer products, managing the global PayPal bank transfer platform, and in July 2011 as the head of PayPal China's core payment.

When it comes to creating Cred (LBA), Lu Hua mentioned the experience of studying abroad and working abroad in the early days. When he was studying in Canada, he managed to establish credits. When he went to the United States to return to zero, after returning from the zero-established credit in the United States, Domestic banks do not recognize credit cards.

When I returned to work in 2011, I found that the personal credit information system includes the evaluation of the underlying assets. It is difficult to have a system in the world to achieve a good docking. In the traditional financial field, the credit information mechanism is fragmented.

During the period from 2017 to early 2018, due to the significant appreciation of cryptocurrencies, more and more people realized that cryptocurrency as the underlying asset is universally equivalent.

Our team is also very excited, I hope that things that were not done on PayPal can be realized by blockchain. For example, the personal credit history can be recorded on the public chain, and the things that were originally separated in the traditional financial field can be seamlessly linked, so we came out to do Cred.

Financial management + borrowing, using traditional financial thinking to activate digital currency

In the bull market, everyone expects a high level of digital currency, and hopes to have liquidity. Therefore, at that time, it is important to push the mortgage loan business. When the cow turns to bear, because the collateral price fluctuates greatly, the user does not want to mortgage, and this time the financial management instead Become a big demand.

Lu Hua, who has many years of experience in global payment operations, still has a natural sensitivity to investing in digital currencies. He knows how to adapt to the market so that users can take advantage of idle digital currency. In the face of different states of the bull market, Cred (LBA)'s focus is not the same, it will be constantly adjusted according to market demand and user expectations of the product, and very efficient.

Leverage the unique charm of the blockchain to create the LBA economic ecosystem

The blockchain has its unique charm. It allows all countries in the world to use your products without gaps. Cred's first wallet in the US, Uphold, has launched the CredEarn financial services, which will have more than 100. The users of the country tried this product. What people did not expect was that the most people came from Latin American countries, of which Argentina was the most, followed by Venezuela. These countries have too much inflation and their domestic currency is not very strong. They are for us. The service is very demanding, you can get stable coins, you can also have income, if you buy 10,000 LBA, your income will increase by two points.

I just read the data before the live broadcast. There are nearly 50 million LBAs on Uphold. We have 500 million in circulation. This is the first wallet we have cooperated with, and it has locked 10%. This is exactly It shows that our general economic design is reasonable, everyone's needs are very large, and its space is very large. Many partners have also seen the infinite prospects of Cred (LBA) and have sought to cooperate with them. At present, Cred (LBA) is cooperating with a large number of stable currency providers, users can mortgage large coins to stabilize coins, and can also use large coins and stable currency to manage money.

The income generated by our borrowing and lending can just cover the payment of the wealth management. If you buy 10,000 LBAs, your earnings will increase by two points. If it is a loan, the original annualization is 15%. If you hold a certain amount of LBA, you can drop to 12%. To make this general economic system, the more important point is to establish the LBA ecosystem so that everyone can enjoy other financial services in this ecosystem. Later we will also cooperate with more high quality partners.

Safety + income, this is our core

Nowadays, there are not many platforms for cryptocurrency financing. In particular, some exchanges even have an annualization of 30%-40%. Under such a background, what core competence does Cred (LBA) have to lock the hearts of users? ?

As the average user on the lending platform, the two most concerned are the security and the benefits. Our income, we can pay attention to our twitter, and our Twitter follow-up is a real-time follow-up. At present, BTC can get 10%, stable currency can get 8%, US dollar and euro 3% to 5%. First of all, everything we do is based on compliance, and interest rates need to be in a reasonable range.


Latest Cred earnings (Source: Cred twitter)

When it comes to security, you have to mention the characteristics of the Cred (LBA) team itself, who are very familiar with the regulation because of their origins in the payment industry.

My partner, Dan Schatt, has served as the general manager of PayPal's financial innovation department. It has a lot of cooperation between PayPal and global financial institutions. Now we want to copy this to the blockchain industry. In February, we obtained the California loan license. This license is still difficult to obtain. On the one hand, it requires high demands on the team. It requires core employees to have many years of financial industry background. On the other hand, it also has high requirements for company assets.


In addition to the team itself, Cred (LBA) has worked with many excellent hosting organizations around the world, including BitGo, Ledger, Bittrex Enterprise, to ensure that users are able to securely and securely generate revenue. In addition, the previous burst of Cred (LBA) also reached a comprehensive cooperation with PricewaterhouseCoopers to help us design how to cooperate with the stable currency.

In addition, we will soon cooperate with an insurance company to launch an insurance service. If the user's currency has any loss to us, the insurance institution will refund it in full. In addition to various hosting services, we will announce to the users every quarter how many locks are in place, and everyone can query them.

When it comes to the circle, the most influential book for him, Lu Hua said that his partner wrote "Subversive Bank". Under the Internet environment, PayPal does not seem to have the group of young people to achieve "creating a global free currency system." Dreams (Remarks: from the imaginary book "Payment War" about the creation and development of PayPal), Lu Hua, who dreams of such a dream, now faces the wave of blockchain, brings his own heart and re-starts, this time he Whether we can achieve subversion, let us wait and see!

Copywriter: Wang Wei

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