Crypto exchange Binance is investing in a global lending network for crypto loans in partnership with Libra Credit. The news is being praised as a positive move for the exchange in its quest to diversify across the marketplace. Binance is teaming with decentralized lending network Libra Credit to create a platform that will allow users to borrow both crypto and fiat by using the Binance Coin as collateral.
Binance moving into other markets
Binance is always looking for new ways to diversify its strategies across the crypto-sphere. The partnership between Binance and Libra Credit is very intriguing as the credit firm is now being spearheaded by a team of experts led by former PayPal tech executives. Libra Credit is looking to move into the modern age of lending by utilizing the latest blockchain technologies.
The CEO of Binance Labs, Ella Zhang, recently talked about the move and how the partnership is a recipe for success. “The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to making a long-lasting impact in the industry,” said Zhang.
Libra Credit, based in California, was co-founded by Lu Hua and Dan Schatt in 2017.
Schatt is a fintech expert with years of experience working in a management capacity for payment gateway giants, PayPal, and the author of virtual banking guides.
Lu Hua is also experienced in the payment industry and was himself an engineer for PayPal. Before founding Libra Credit, Hua started a Chinese credit service called Mo9, which was popular across the nation for mobile games and virtual goods.
Their combined expertise, along with the powerful Binance platform, can offer a good foundation to bridge the gap between the crypto industry and the lending sector. Libra Credit already offers crypto-to-fiat loaning options that allow for crypto assets to be used as collateral in lending.
Libra Credit also offers many interesting services such as crypto-to-stablecoin loans that will allow crypto users to hedge their market fluctuations while remaining in the market, which will be great news for some crypto traders. The platform will allow crypto-to-crypto borrowing that will garner greater liquidity for the more mainstream crypto coins such as bitcoin and ether.
Binance is always looking to penetrate new markets, and seems especially interested in working with other companies, which is great news for the improvement of services for the exchange’s already existing users, and will no doubt attract more interest from those looking for loan alternatives.
As more people than ever before are requesting the ability to liquidate their crypto assets in a short-time period, the new partnership between Binance and Libra Credit for crypto loans could well be a game-changer.
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