Binance Partners With Blockchain-Based Startup Libra Credit for Loans Collateralized by BNB

Francisco Memoria
  • Binance Labs recently partnered with Libra Credit to offer loans collateralized by BNB.
  • The partnership aims to address the "growing global demand for liquidity of crypto assets based on the Ethereum blockchain."

Binance Labs, the investment arm of leading cryptocurrency exchange Binance, has recently partnered with Libra Credit to offers its users loans where the exchange’s BNB token will be used as collateral.

According to a recently published blog post, the partnership will see Libra Credit, a platform building a decentralized lending ecosystem to facilitate credit, lend fiat or cryptocurrencies to BNB holders who pledge their tokens as collateral.

Libra Credit notably finished its initial coin offering (ICO) earlier this year, where it raised $26 million selling its LBA token. It’s now planning on launching a mobile app for borrowers, as well as a desktop lending platform.

Per the post, the partnership aims to “address the growing global demand for liquidity of crypto assets based on the Ethereum blockchain.” Binance Labs’ chief executive officer Ella Zhang was quoted as saying:

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.

Ella Zhang

Binance itself has been rapidly expanding. Recently, CryptoGlobe reported the cryptocurrency exchange is planning on entering the South Korean market, at a time its chief executive Zhao Changpeng revealed he expects $1 billion in profit this year. Its token, the Binance Coin (BNB), has been bucking the bearish trend.

The company’s leading position in the ecosystem saw hackers try to take advantage of it. Earlier this month, they phished users to control their API keys, to subsequently manipulate SYS trading pairs. Their plan seemingly failed, as Binance rolled back irregular trades. In response, it launched a Secure Asset Fund for Users (SAFU).

Crypto Lending Scene

This is a notable development for the cryptocurrency lending market, which has been steadily growing in the past few months. The loans let cryptocurrency investors use coins as collateral, while having funds to invest in new ventures.

Earlier this week crypto bank Galaxy Digital, headed by billionaire investor and well-known bitcoin bull Mike Novogratz, led a $50 million funding round for BlockFi, a cryptocurrency lender that gives investors loans of up to $10 million against BTC or ETH.

CoinLoan, an Estonian startup, also launched a cryptocurrency loan service this year. Other offers on the market include ETHLend, a lending service that sees users lend ETH using tokens as collateral. Halts Trading Amidst Market Slow Down

Michael LaVere
  • is halting all trading activity for an undetermined period of time. 
  • The exchange cites unfavorable market conditions and rising infrastructure costs as contributing to the decision. 

Cryptoasset trading platform has announced a halt to its trading activities amidst the market slow down, while claiming that the suspension will only be transient. 

On Oct. 22, announced a complete suspension of trading on its platform, citing low volume and activity in the crypto markets.  The announcement reassured investors that the suspension would only be temporary, is not going out of business. The crypto exchange will be archived securely and pending the financial opportunity will be reopened at a future date.

In addition to unfavorable market conditions, said there was pressure from massive marketing budgets and increased infrastructure costs. They also called out the abundance of scam projects in cryptocurrency resulting from the lack of regulation, including exchanges posting artificially inflated volumes. 

The announcement continued, 

This is purely a profit and loss decision. Despite the success of our re-launch, it has become clear to us that in current market conditions the exchange is a long way from turning a profit. Profits (and losses) directly affect the LP payouts.

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