Binance Labs, a leading blockchain technology incubator and the investment arm of cryptocurrency exchange Binance, has recently announced its partnership with Libra Credit to address the growing global demand for liquidity of cryptocurrency based on the Ethereum blockchain. Reportedly, the duo is expected to offer loans where the exchange’s Binance token (BNB) will be used as collateral.
According to sources familiar with the matter, the cryptocurrency market has been steadily growing and the loans let the stakeholders use coins as collateral, while also being equipped with funds to capitalize on new business ventures.
Libra Credit has completed its ICO (initial coin offering) earlier in 2018, and has raised USD 26 million selling its LBA (Libra Credit) token. The company is now planning on launching a mobile application for borrowers and leading desktop platform. For the record, the San Francisco-based Libra Credit was founded in 2017 and is a decentralized lending company focusing on the blockchain technology.
According to Binance Labs’ CEO, Ella Zhang, the founding team of Libra Credit is committed to make a lasting impact in the cryptocurrency industry. The CEO further added that the company has unique experience and resources in financial services & payment solutions.
According to a recently published blog post, Binance has been expanding rapidly and is also planning to extend its operations across the South Korean market. Zhao Changpeng, founder and chief executive of Binance revealed that he expects proceeds exceeding USD 1 billion in 2018.
In other news, Binance’s leading position in the cryptocurrency lending market saw significant number of hackers try to take advantage of it. Earlier in July, the hackers phished the users to control their application programming interface (API) credentials, to manipulate SYS trading pairs. However, the attempt was a failure as Binance rolled back irregular trades and in repose of the scenario also introduced a SAFU (Secure Asset Fund for Users).