Libra Credit Bank Taking Crypto as Collateral?

Libra Credit Bank Partners with Binance Labs

Libra Credit is focusing on several unique business strategies as it strives to increase its competitive edge. However, at the top of its priorities is probably the establishment of its own lending network. Consequently, today’s announcement about the signing of a business partnership with Binance Labs may provide direction to observers interested in the bank’s future. Binance Labs happens to be a blockchain technology incubator. Meanwhile, the owner of Binance Labs is also the largest global cryptocurrency exchange.

According to the partnership agreement terms, each holder of Binance Coin will be able to obtain loans in both fiat currency and cryptocurrency. Furthermore, reports also indicate that Binance Coin holders will be in a position to use their BNB as loan collateral. 

Libra Credit Has Roots in Crypto

Libra Credit is often described as a peer-to-peer lending network having its basis on the Ethereum blockchain. A lot of people now understand exactly how Libra Credit moves about the facilitation of loans. The bank is a frequent collaborator with financial and cryptocurrency markets. Those include financial institutions and third party companies that provide identification data and several exchanges.

The loans come in the form of cryptocurrency-to-cryptocurrency, cryptocurrency-to-stablecoin, and cryptocurrency-to-fiat. The viability the borrower is usually tested on the basis of the associated credit scores. Aside from that, borrowers are evaluated using established risk management technology.

Turn of events

The unveiling of its platform is set to take place in the third quarter of 2018. As a result, there are reports that in the fourth quarter it will be launching a mobile phone application.

The current CEO of Binance Labs is Ella Zhang. He spoke about the venture’s new partner while emphasizing its attractiveness. Zhang highlights the bank’s resources and remarkable experience in payment solutions and financial services. He believes that the partnership will greatly benefit its customer base as both parties are dedicated to the establishment of long lasting impacts in the industry.

Binance’s reputation is that it is willing to do anything to rapidly expand its share of the crypto market. Consequently, we may soon witness the company expand its footprint into the South Korean cryptocurrency market.

The opening of 2018 was a pretty tough one for cryptocurrencies. However, Binance remains focused on maximizing profits.

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