Yes. All assets deposited in Crescent are lent out in partnership with trusted and regulated institutions. All loans are overcollateralized or "covered", meaning our partners hold additional reserves (150% of the principal) that protects your principal deposit value.
Safety and security is our top priority for customers. Our team works hard to make sure all information and transactions are as secure as possible.
At the account level, we encrypt all user data using the AES-256 standard and protect accounts at the highest level with a personal PIN number and two-factor authentication (2FA). This ensures that access to your account is as secure as other finance and payment apps such as Venmo or Robinhood. For additional user safety, we stick to stringent KYC standards to avoid fraudulent users and regularly audit activity on the app to flag suspicious behavior.
On the account side, we manage all bank connections securely with Plaid, the industry leader in bank integrations. Whenever you add a bank account or card to Crescent, Plaid facilitates the connection through its secure servers. This is the same banking integration used by hundreds of financial services including Venmo and American Express.
Risk to Principal:
While other firms loan your funds to other parties to generate yield, Crescent does not use, loan, hypothecate, pledge, or invest your funds. That means you will have continuing financial access to the funds you deposit, regardless of Crescent’s ability to meet its obligations to pay interest.
Risk to Interest Payments:
Technology and Security Risks:
Your funds will be securely custodied by Prime Trust, LLC, which is a Nevada chartered trust company subject to regulatory and financial reporting requirements. Prime Trust, LLC is ISO/IEC 27001:2013 certified and at least 50% of their engineering team is dedicated to security and risk management.