Binance Labs, a blockchain technology incubator owned by the world’s biggest cryptocurrency exchange, has signed a partnership with Libra Credit, a blockchain startup which is building a decentralised lending network, according to a Libra announcement published in Medium.
Under the terms of the partnership, holders of Binance Coin (BNB) will be able to receive loans in both cryptocurrency and fiat currency, using their BNB as collateral.
The deal
Libra Credit is a peer to peer lending network based on the Ethereum blockchain. According to its website, it works with partners in the cryptocurrency and financial markets including exchanges, third-party identification data-providers, and financial institutions to facilitate loans. The loans come in the form of cryptocurrency to fiat, cryptocurrency to stablecoin, and cryptocurrency to cryptocurrency. It tests the viability of the lender and borrower according to credit scores and its own risk management technology.
It intends to launch its platform in the third quarter of 2018 and a mobile phone application in the fourth quarter.
Ella Zhang, CEO of Binance Labs, commented on the venture’s new partner: “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”.
Binance Coin, Binance Labs, Binance Chain
BNB is an Ethereum-based an ERC20 token that is used to pay transaction fees on the Binance exchange. It has a market capitalisation of $1.3 billion, according to coinmarketcap.com. In March 2018 Binance launched its own blockchain, Binance Chain, and pledged to upgrade BNB so that it will work there too.
Binance Labs supports startup companies with funds and advice and has a service called Binance Launchpad “where many ICOs finish in less than 60 seconds,” according to its website. Approved cryptocurrencies also benefit from priority listing on the Binance exchange.
In April 2018, Binance Labs led a fundraising event for a startup called MobileCoin, which is a privacy-focused cryptocurrency built on the Stellar blockchain. The round raised $30 million for the company, denominated in Bitcoin and Ethereum.
Binance billions
Binance is just barely a year old, but its CEO Changpeng Zhao recently predicted a net profit of up to $1 billion in 2018. It registers daily trading volumes of just over $1 billion according to coinmarketcap.com.
In June 2018 Binance announced that it would be opening an exchange in Jersey, a British Overseas Territory, and in July Zhao said at a Seoul event that the company would be opening an office in South Korea; that country’s government recently began to re-think its anti-cryptocurrency stance.
(Photo: pixabay)
