Binance Labs has invested in electronic loan company Libra Credit to provide fiat loans (government-issued money) and electronic money to BNB owners as collateral.
Binance Labs is a social impact fund, specializing in providing funds to invest in startup projects involving electronic money and blockchain. The cooperation with Libra Credit is the latest venture of Binance Lads, which proves that Binance will take advantage of the increasing demand for liquidity of digital assets.
Libra Credit is considered a platform to provide decentralized digital financial services, focusing primarily on lending. Their ICO project to issue Libra Credit electronic currency (LBA) ended on May 5, 2018 and raised $ 26 million. Libra is planning to launch a desktop lending platform and a mobile loan application.
The market for electronic money lending is growing
This latest partnership is just one of many more and more electronic money lending services. This form of lending will allow electronic money investors to use their currencies as collateral in the same way as collateral in conventional forms of borrowing. Lenders can still take advantage of the value of their money and keep the final ownership but can borrow other currencies, including fiat, to use for the next project.
Earlier this week, Mike Novogratz’s merchant bank, Galaxy funded $ 50 million in funding for electronic money lender BlockFi, providing loans of up to $ 10 million compared to Bitcoin and Ethereum investments. .
CoinLoan, an Estonian start-up company, has also launched a loan service, which connects users who want to become lenders or borrowers and secure transactions between matching and agreeing with attendees. family.
Recently Bitcoinist interviewed P2P INLOCK loan platform in June 2018, to understand its platform that allows electronic money investors to continue HODL while also unlocking their funds.
Binance is getting more and more … expanding
Binance is rapidly expanding its influence in the electronic money market. Last week, Business Korea reported plans to participate in the electronic money market in Korea of this exchange.
Despite many difficulties at the beginning of the year, Binance is on the right track to be able to achieve net profit of up to 1 billion USD this year. Coinbase confirmed a $ 300 million profit in the first 6 months of 2018.
The market for electronic money lending is expected to grow very large, but there are some barriers for borrowers who often do not need to provide credit history, income information ….
What do you think about this type of loan?