The Litecoin Foundation, a non-profit organization that helps LTC adoption grow, has allocated an undisclosed part of its treasury to a cryptocurrency lending program where it’ll earn interest.
The funds, according to CoinDesk, are going to be earning interest with the Celsius Network, a blockchain-based cryptocurrency lending firm that rewards users for holdings coin on its wallet, which will now be the preferred crypto wallet of the Foundation.
The deal, the news outlet reports, will see the Foundation allocate part of its treasury to the Celsius Network. In it, LTC holders can earn as much as 10.5% interest on their cryptocurrency holdings.
Celsius Network’s CEO, Alex Mashinsky, reportedly noted the endorsement by the Foundation validates its platform. He was quoted as saying:
Litecoin being the first foundation to work with us and endorse us is a real milestone. It’s a huge event. That’s the first time I can say that the general community is recognizing Celsius for the utility it provides.
The Network reportedly already completed over $2 billion in loans this year, and issued over $3.5 million in interest to its users. Charlie Lee, the managing director of the Foundation and the creator of Litecoin, told the news outlet the organization chose Celsius as it’s “always interested in helping LTC holders take advantage of new use cases for their holdings.”
Per Lee, the best way to show users confidence in the product is by “allocating a portion of the LF’s treasury” to it.
Featured image via Pixaqbay.com
