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.

OKEx to Foster Crypto Talent Via Mentorship Program

Popular cryptocurrency exchange OKEx is launching a mentorship program called Beacon Program in Europe to support those interest in the cryptocurrency space during the lockdown and foster new talent in the space.

According to a press release shared with CryptoGlobe, OKEx has noticed the cryptocurrency industry has been gaining significant traction, with the total number of confirmed Bitcoin transactions per day steadily rising since the March market crash, and the total trading volume on major exchanges surpassing $680 million in March.

The pandemic, according to the exchange, “undoubtedly accelerated the adoption of crypto” and encouraged people to see Bitcoin as a safe haven like gold or real estate. Given the increased interest, OKEx is expanding its presence beyond the 180 countries and regions it is currently serving, and expects to double its staff over the next two years.

The exchange’s CEO Jay Hao was quoted as saying:

This is an exciting time for OKEx, we plan to open new offices in more regions to better serve our users, and we’ve already started recruiting passionate blockchain professionals to grow and prosper together. We expect a 100% increase in the total number of staff in 2 years serving customers from around the world,

Hao added that OKEx is launching its Beacon Program to nurture talent in the cryptocurrency space. The program will recruit 6 mentees for a one-month mentorship program with Jay Hao himself and OKEx’s Director of Financial Markets Lennix Lai.

The program will see mentees join their mentors once a week for a 30-minute mentoring session on Telegram, and will allow them to participate in masterclasses given by industry professionals on topic surrounding the blockchain and cryptocurrency space.  The OKEx team will guide them by sharing industry research, news digests, and more with them so the most talented mentees join the firm.

As CryptoGlobe reported, OKEx burned 70% of its OKB token’s supply earlier this year, helping the cryptocurrency’s price surge little over 90% in a 30-day period. At the time it launched a testnet for its decentralized exchange, which further helped demand grow.

Featured image via Pixabay.