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Binance Labs Invests In Crypto Loans Company, Libra Credit

The world’s largest crypto exchange, Binance, plans to take advantage of a growing demand for the liquidity of crypto assets. Binance Labs plans to invest in crypto loans company, Libra Credit. Binance Labs which invests and incubates in blockchain and cryptocurrency projects is a social impact fund.

Libra Credit, with its primary focus on lending, is branded as a decentralized digital asset financial services platform. The firm’s ICO with the LBA coin ended on May 5th, 2018. It raised around $25 million. Presently, Libra in its pipeline has plans to launch a desktop lending platform and a mobile application for borrowers.

This partnership is an example of the rising number of cryptocurrency loan services. With the help of the loans, crypto investors use their coins as collateral in the same manner a property is used at the time of conventional borrowing. Lenders can retain final ownership and still take advantage of increases in the value of their coins. They can borrow other currencies including fiat to be utilized for future projects.

Mike Novogratz’s merchant bank, Galaxy led a $50 million round of funding for the cryptocurrency lender BlockFi, earlier this week. BlockFi provides loans of up to $10 million against Ethereum and Bitcoin investments.

Binance’s Future Expansion Plans

According to the Bitcoinist report, Binance is rapidly expanding its massive share of the cryptocurrency market. The exchange plans to make its foray into the South Korean cryptocurrency market.

Despite its shaky start for cryptocurrencies in 2018, the Binance crypto exchange seems to be on track making net profits of up to $1 billion USD this year. It confirmed profits worth $300 million in the first six months of 2018.

Taking into consideration the market capitalization of cryptocurrencies and the few barriers for borrowers who often don’t need to provide their credit history and earnings information that conventional lenders need, the cryptocurrency-backed loans market could be quite promising.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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