How does Uphold make money?
From its inception, Uphold has always stated that we are committed to dialing convenience up and driving costs as low as possible. Since our public launch in November 2014, we have been improving rates and tracking data as we work towards delivering upon this promise.
In the long-term, our most important source of revenue will be from investing our own reserve in low-risk, yield-bearing instruments. (As an example, we’d invest in short-maturity US Treasury bills, thus generating a small yield on an increasingly large amount of money.) Real-time transparency sits at the foundation of this company precisely for this reason. This radical level of transparency means that when we start to invest our reserve, it will be a matter of public record how much we invest and where. And because we publish a real-time accounting of obligations and assets in our reserve, anyone at anytime can confirm that Uphold is solvent. We also may generate fees from certain high volume and institutional customers who separately agree to those fees. We are finally giving people a safe and transparent alternative to where and how they hold their money and we are competing against the legacy financial system on the stewardship of this money.
We are also fully committed to respecting the privacy of our members and do not sell any of our member's data, nor do we have any intention of doing so in the future.