Binance Labs, the investment wing of the leading cryptocurrency exchange, Binance, has announced that it has invested in Libra Credit – “a decentralized digital asset financial services platform.” The partnership will allow holders of Binance’s native token, Binance Coin (BNB), to use their BNB as collateral for loans in crypto of fiat currency.
BNB Holders Able to Stake Holdings to Borrow Fiat or Crypto
Binance Labs the investment arm of Binance, has revealed a partnership with the decentralized global lending network, Libra Credit. Libra Credit is a lending network based on the Ethereum blockchain, with the company planning to launch its platform in the third quarter of 2018, before also launching a mobile phone application in Q4.
According to a press release issued by Libra credit, the partnership “aims to address the growing global demand for liquidity of crypto assets based on the Ethereum blockchain.” The partnership will see Libra Credit “lend fiat and crypto denominated assets to users who pledge BNB as collateral.”
Ella Zhang, the chief executive officer of Binance Labs, stated: “The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to mak[ing] long-lasting impacts in the industry.”
BNB Rallies 8.5% on News of Libra Partnership
News of the partnership between Binance Labs and Libra Credit appear to drive moderate gains in the BNB markets.
In the two days following the announcement of the partnership on the 27th of July, BNB gained roughly 8.5% over BTC – rallying from approximately 0.001675 BTC to a high of roughly 0.00182 BTC the following day. When looking at the USDT charts, BNB rallied nearly 11% from roughly 13.3 USDT to a high of 14.75 USDT on the 28th of July.
The rally was short-lived, however, with BNB giving back nearly the entirety of the preceding days’ gains on the 29th of July when measuring against BTC. As of this writing, BNB is trading for 0.00168 BTC, after falling roughly 6.5% from the opening price of 0.001787 BTC. When measuring against USDT, BNB appears to be testing support at 13.8 USDT after falling by 6% since the market’s opening price of roughly 14.6 USDT.
What is your reaction to the partnership between Binance Labs and Libra Credit? Share your thoughts in the comments section below.
Images courtesy of Shutterstock, Medium, Trading View
Want a comprehensive list of the top 500 cryptocurrencies and see their prices and overall market valuation? Check out Satoshi Pulse for all that hot market action!