One of the world’s largest crypto exchanges by trading volume, Binance, has yesterday announced a new partnership — one that will see a new coin join its ecosystem, as well as a new service for its community to enjoy. The partnership concerns the leading platform in the area of crypto lending and borrowing, Cred.
The two worked out a deal that will see a migration of a portion of Cred’s own cryptocurrency, LBA, from Ethereum’s network to Binance Chain. The goal of the partnership is further decentralization of finance, with Cred becoming the official borrowing and lending platform in the DeFi ecosystem.
Meanwhile, Binance will be Cred’s partner, as well as an investor. The exchange aims to seek out new opportunities in terms of supporting and leveraging Cred’s services within its own ecosystem.
— Binance (@binance) May 30, 2019
Binance’s Chief Growth Officer, Ted Lin, commented on the partnership, stating that the exchange is delighted to start working with Cred and help bring the lender’s services to more users and markets alike. With the power of Binance Chain, Cred will expand worldwide. Meanwhile, Binance Chain offers a one-second block time, which will ensure fast transactions and efficient and effortless interactions by Cred’s users.
Cred itself is a completely licensed lender, headquartered in California. So far, the company managed to secure more than $300 million in lending capital. It works with custodians, crypto application providers, wallets, exchanges, and other entities. It offers some of the best borrowing and lending rates in the entire crypto lending industry.
Earlier this year, it announced numerous new partnerships with different crypto custodians and influential groups and organizations. As mentioned, it also features its own cryptocurrency, LBA. Those who possess the token will have the opportunity to commit their cryptocurrency to a fixed term, but also have the ability to rollover assets for additional periods.
The best rates, however, come when coin holders are staking LBA. There is no account minimum, and interest is paid out entirely in stablecoin. Cred’s co-founder, Dan Schatt, stated that Binance had been a major investor, and a strong partner, ever since Cred came to be. The company is very optimistic about the new partnership and happy to lend its support to Binance Chain. Further, they wish to continue their collaboration with the exchange and help bring decentralized finances to as many people as possible, and in the most sustainable way.
Of course, Binance is not Cred’s only investor from crypto and tech industries. The firm is also supported by Binance Labs, Arrington XRP Capital, FBG Capital, 500 Startups, and Blocktower. Additionally, Cred is one of the founding members of the Universal Protocol Alliance and Blockchain Advocacy Coalition’s board member.
Another strong move for Binance
While the crypto community and Cred itself will see a lot of benefits from the partnership, the same is true for Binance. The exchange has ceased to be just that quite a while ago and is working hard towards becoming an entire ecosystem. In 2019 alone, Binance made multiple major moves, such as launching two fiat-to-crypto exchanges so far — Binance Jersey and Binance Singapore.
It also launched its own Blockchain, Binance Chain, as well as its own decentralized exchange, Binance DEX. The exchange also suffered a hacking attack which stole 7,000 BTC, although the hack did not have major consequences for the crypto industry, or Binance itself, so far.
Its native coin, Binance Coin, is currently skyrocketing, with its price exceeding $34 at the time of writing. Less than half a year ago, the coin’s value was only at $5, which shows how far BNB has come in a few short months. Now, with this partnership, Binance’s ecosystem and influence in the crypto space can only grow further, as the exchange adds more and more new services, options, and partners.