Binance Labs has entered into a partnership with Libra Credit that will now allow Binance Coin (BNB) holders to collateralize their coins to receive fiat and crypto loan.
One of the biggest and most popular crypto exchange Binance has joined hands with Libra Credit to “address growing global demand for liquidity of crypto assets.”
According to the official blog, Binance labs, the investment arm of Binance exchange has invested in Libra Credit. Binance Labs is a social impact fund that “incubates, invests and empowers leading blockchain and cryptocurrency entrepreneurs, projects, and communities.”
Whereas Libra Credit is a decentralized global lending network that basically provides “open access to credit anywhere and anytime”. It is founded by former PayPal financial technology veterans whose plan is to launch a mobile application and a desktop lending platform for borrowers.
“Binance Labs and Libra Credit Partner to Address Growing Global Demand for Liquidity of Crypto…” by Libra Credit https://t.co/NiB8L1t8Oi
— Ella Zhang (@ellazhang516) July 30, 2018
In today’s cryptocurrency world, the crypto loan services are growing at an increasing pace. Here, the crypto investors use their coin as collateral just like a property is being collateralized in the traditional borrowing method.
The good thing with crypto loans is the lenders can still take advantage of the increase in their coins’ value. Moreover, they are also allowed to retain their ownership while allowed to borrow fiat and other currencies for projects.
Also, read: Binance Native Token BNB Flies 10% as Pundi X adds to its POS
Binance Coin (BNB) might be just the native cryptocurrency of Binance exchange but it holds significant value. Currently ranked at 18th position, BNB is trading at $13.46 with a market cap of $ 1.28 billion. With Binance and Libra Credit’s partnership, Binance Coin (BNB) holders will be able to pledge their BNB coins as collateral to borrow fiat and crypto dominated assets.
Ella Zhang, the CEO of Binance Labs stated,
“The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to making long-lasting impacts in the industry.”
The aim of this partnership is to address the liquidity of crypto assets that are based on Ethereum blockchain. Libra Credit is providing the solution to this issue that is prevalent globally, in the form of allowing users to collateralize their cryptos for credit. These credits can be facilitated anytime and anywhere and in varying loan denomination.
Given the current market capitalization of cryptocurrencies which is running in billions, this kind of crypto-backed loans market can be expansive as well as of great potential.
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