Binance exchange is teaming up with Cred to offer cryptocurrency lending and borrowing services across its ecosystem.
As part of the arrangement, California-based Cred will migrate a portion of its native “LBA” token to Binance’s blockchain network, Binance Chain, according to an announcement Wednesday.
Binance chief growth officer Ted Lin 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.”
Cred offers two services: “Borrow” and “Earn,” according to information from its website. The former allows users to borrow fiat currencies with cryptocurrencies as collateral, while the latter offers interest rates on deposited cryptocurrencies and fiat currencies.
The firm is backed by investors including Binance Labs and Arrington XRP Capital, and claims to have already secured over $300 million in lending capital, according to the announcement.
Earlier this year, Cred also formed an alliance with cryptocurrency exchange Bittrex and four other blockchain firms, 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.
The addition is the latest new offering from Binance. Last week, the exchange confirmed that it will be launching a margin trading service in the near future.
It’s also recently 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.
Correction: This article previously indicated Binance is to offer lending and borrowing through the partnership. This was not correct and has been amended.
Binance image via Shutterstock
Check out the original article here.
Author: Yogita Khatri