Binance Labs Partners Libra Credit To Offer Cryptocurrency and Fiat Currency Loans

31. Jul 2018 Posted by Guest on News

Binance Labs has engaged the services of Libra Credit as it moves to offer BNB coin holders, loans pegged in both cryptocurrency and fiat currency. Under the terms of the deal, leading peer-to-peer network Libra Credit is to facilitate the loans.  The deal also includes a direct investment from Binance labs. Terms of the deal remain under wraps.

Binance Labs and Libra Credit have come together to try and strengthen crypto assets liquidity on Ethereum blockchain.  The offering will also seek to streamline the cryptocurrencies integration into fiat financial services, in a bid to make it easy to convert crypto-assets into traditional assets

BNB Coin holders will be able to use their holdings as collateral on loans issued by Libra Credit. Token holders should be able to hedge against price volatility on collaterizing BNB tokens.

“The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to make long-lasting impacts in the industry”, said Ella Zhang, CEO of Binance Labs.

Libra Credit with its diverse team of entrepreneurial leaders is planning to revolutionize the cryptocurrency and fiat lending industry. It currently operates a payday loan platformwith a book value of over $850 million. The firm is currently in the process of building a decentralized lending network.

It has also inked deals with firms in the cryptocurrency and financial markets as part of its push to offer loans. The lending platform is set to go online in the third quarter with a mobile phone application slated for release in the fourth quarter.

BNB coin becomes the latest altcoin to be added in Libra Credit platform in the lending sphere.  The addition also affirms Binance push to try and come with new use cases for its token. Recently, the cryptocurrency exchange behind the token inked a deal with Pundi X that allows people to use the token to settle transactions in the startups POS device.

Binance coin received a boost on the announcement of the Libra Credit partnership, depicted by an 8.5% gain over Bitcoin (BTC). It also gained 11% against the dollar.  However, the cryptocurrency is still trading in a downtrend after struggling to rally above the $15 mark. It is currently trading near the $13 mark, a support level below which it remains susceptible to further declines.