Cred, a San Francisco-based Cryptocurrency platform that offers lending and borrowing solutions, has partnered with Binance to offer its solutions.
Consequently, Binance will no longer be a marketplace where buyers and sellers make orders but a fully-fledged ecosystem for Digital Assets’ transactions.
Introducing LBA Token On Binance
To get started in offering the Crypto Lending and Borrowing service, Binance is listing LBA Token that is native to Cred Blockchain.
The ERC-20 LBA Token is designed to allow traders to easily borrow or lend different assets that are backed on Cryptos on the Cred ecosystem.
Therefore, LBA listing will, resultantly, enable Binance users to also benefit from the innovative Crypto Trading use-case.
Meanwhile, Cred users will finally be able to trade Binance listed Crypto pairs such as BNB/BTC and more. Additionally, Ted Lin, the Chief Growth Officer of Binance believes that the “one-second block time,” on Binance Chain will be a turning point for Cred’s credit facilities as it will ease LBA Tokens transactions and trigger a surge in LBA adoption.
According to reports, Cred already has a credit facility of $300 million, and Binance Chain is positioned to proffer this facility to credit clients.
How Cred Works
Information on the Cred website says that there are two key services on the platform; “Borrow” and “Earn”.
Borrow allows Crypto enthusiasts to use their Crypto as collateral to borrow Fiat currencies. The importance of the service is that it merges both the traditional monetary economy with the emerging Crypto economy by fostering the liquidity of Cryptocurrencies.
If Cred’s “borrow” solution is rolled out on large scale, it could greatly disrupt the financial landscape by offering an easier alternative to lenders’ standards that alienate many borrowers after applying stringent creditworthiness background checks.
On the other hand, the “Earn” service gives Crypto hodlers a platform to lend their Digital Assets and earn interest. The service also applies on fiat deposits where currency holders can lend fiat money to their peers on Cred and in return earn interest rates.
Binance Has Been Funding Cred’s Projects
It is now evident that Binance is a focused Crypto Exchange after Cred President Dan Schatt revealed that Binance has been investing on the tech platform from its inception. Dan further says that the platform is excited and willing to continue its partnership with Binance on its mission of decentralizing the access of finance on a large scale.
Cred Has Been Forming Partnerships With Crypto Trading Platforms
Binance is not the first Crypto Exchange that Cred has partnered with. At the beginning of the year, Cred and Bittrex joined four other Blockchain firms to develop and deploy a Euro-backed Stablecoin codenamed “universal Euro”. Like the LBA, or BNB in this case, the Token pays interest to hodlers who deposit it on the Cred mainnnet.
The Crypto Exchange has been diversifying its services to make the use of Cryptos more meaningful in a global economy that is still dominated by governments’ monetary policies. In its latest project, the leading crypto Trading platform announced that it will be launching a margin trading service “soon”.