Binance Expands Into Crypto Loans with Former PayPal Fintech Veterans

Cryptocurrency exchange Binance is always on the verge of expanding its wings in almost all directions. This time they have endowed into Crypto Loans with Former PayPal Fintech Veterans. The firm has invested in a decentralized global lending network called Libra Credit. The lending networks that leverage crypto assets are proliferating because the global demand for liquidity of crypto assets is growing continuously.

Libra Credit

The company aims at revamping the lending industry. Furthermore, the company will seek the help of machine learning and blockchain technology for this process. Libra Credit is a platform that enables the users to borrow fiat and crypto-denominated assets by pledging Binance Coin (BNB) as collateral.

The foundation of the San Francisco-based startup was laid in 2017. Dan Schatt, a fintech veteran and Lu Hua. Schatt, PayPal’s former general manager of Financial Innovations were involved in it.

According to the Binance Labs CEO, Ella Zhang, “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.”

In order to bridge the gap between traditional finance and cryptocurrency a variety of structures have been offered by Libra Credit which is as follows:

  • Fiat can be spent without sacrificing current crypto position with the help of “Crypto-to-fiat loan” which allows collateralization of cryptocurrencies.
  • The borrowers can pledge altcoins for more mainstream cryptocurrencies (i.e. BTC/ETH) with better liquidity through Crypto-to-crypto lending.
  • Moreover, Crypto-to-stable coin loans will facilitate the borrowers to hedge price volatilities without walking out from the market.

BlockFi, Ethlend, Salt, Rad Lending and Nexo are a few names of the rivals who belong to this industry.

Binance

Binance is one of the largest cryptocurrency exchanges in the world. Last year in June, the company also launched its own cryptocurrency. It managed to raise 15 million dollars in a July 2017 Initial Coin Offering (ICO) for its ERC-20 BNB token.

 

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