Popular cryptocurrency exchange, Binance is to offer cryptocurrency lending and borrowing through a new partnership with Cred. Cred is a crypto financial platform, they specialize in how to earn and borrow in the token economy. According to an announcement on May 30, the binance partner on this initiative is California-based Cred. Part of the duo’s arrangement involves migrating a portion of Cred’s native token (LBA) to Binance’s blockchain network, Binance Chain. It will officially become their lending and borrowing platform. Ted Lin, chief growth office at Binance said that as Binance Chain has a “one-second block time,” it will help Cred scale its operations to more markets and users, and ensure transactions are “fast, efficient and effortless.”
“Borrow” and “Earn,” are the two services Cred offers. The ‘borrow’ option allows users to borrow fiat currencies with cryptocurrencies as collateral, and the ‘Earn’ option allows interest to accrue on deposited cryptocurrencies and fiat currencies depending on rates. This is quite similar to Crypto Earn and Crypto Credit options that were introduced by Crypto.com a few weeks ago to avail users the added benefit of earning interest on their coin balances and borrow by using digital currency as collateral.
Revealed in the announcement is the firm’s claim of being backed by several investors like Binance Labs and Arrington XRP Capital, amongst others and also that they have secured over $300 million in lending capital already. Cred also formed an alliance with cryptocurrency exchange Bittrex and four other blockchain firms earlier this year; this was in order to launch a euro-pegged stablecoin called the “universal euro.” The stablecoin can also potentially offer holders an annual rate of return if deposited with Cred, the group said at the time.
Recently, Binance launched its decentralized exchange, set up a fiat-to-crypto exchange in Singapore and unveiled a new platform in Australia that allows users to buy bitcoin with cash from newsagents. Binance exchange confirmed as well that it will be launching a margin trading service in the near future but this crypto lending and borrowing addition through Cred is the latest new offering from Binance yet.
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