The World’s largest exchange by trading volume, Binance is joining forces with California based Cred to offer cryptocurrency lending and borrowing services through Binance chain.
In order to facilitate the move, Cred will move some its ERC20 LBA tokens to Binance Chain in order to become the official lending and borrowing platform for the DeFi ecosystem.
Binance Chain reportedly has a one second block time which will enable cred to grow and scale its operations to a larger market and ensure the transactions are fast and efficient.
Cred allows its customers to borrow and earn through a mix of fiat and cryptocurrencies. The borrow service allows users to leverage their crypto assets to access fiat lines of credit. Earn allows users to earn interest on amounts above $25k in crypto assets such as BTC, XRP and ETH and Fiat currencies such as the Dollar and Euro.
Cred, a company founded by Paypal veterans is backed by investors including Binance Labs, Arrington XRP Capital and 500 Startups. To date the company has secured 300 million in lending capital in order to facilitate the finance venture.
Ted Lin, the Chief Growth Officer at Binance commented on the recent news, ‘We are delighted to be working with Cred to help scale their efforts to more markets and users around the world through the power of the Binance Chain, which has a one-second block time and will ensure transactions and interactions by Cred’s users will be fast, efficient and effortless.’
Cred also formed alliances with other cryptocurrency exchanges such as Bittrex with a view to launching the ‘Universal Euro’, a euro-pegged stablecoin.