Binance Lab, the investment section of the world’s largest cryptocurrency exchange, has made an undisclosed investment in Libra Credit, a decentralised cryptocurrency asset financial service firm.
The partnership will give room for BNB holder to have access to loans that are collateralised by BNB.
As part of the relationship, Libra Credit will lend fiat and crypto denominated assets to users who pledge BNB as collateral, a statement by Libra Credit has indicated.
Binance Labs, an arm of Binance, is a social impact fund which is saddled with the responsibility of incubating, investing and empowering projects, entrepreneurs, and communities that are affiliated with cryptocurrency and blockchain.
The purpose of the collaboration is to contain the growing global demand for liquidity of crypto assets based on the Ethereum blockchain.
The statement indicates that “Libra Credit aims to standardize distributed lending ecosystem which will expedite credit at anytime and anywhere, adding that, “users (on the platform) can collateralize their cryptocurrencies for credit in varying loan denominations”.
Ella Zhang, CEO of Binance Labs who spoke on the development said:
“The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to make long lasting impacts in the industry.”
In June, Binance Lab announced it was launching a $1 billion “Social Impact Fund” to expedite the growth of blockchain and cryptocurrency ideas.
The phases of the investments will receive $100 million each, making the incubator lab sick more incubators that it can invest in, which will then invest in ideas related to blockchain as well.
According to Binance, the first project to invest in was a blockchain-powered ride-hailing idea.
To achieve the incubation and mentoring process at Binance Lab, the startup has partnered with MIT Digital Currency Initiative, a leading organization in the open-source cryptocurrency space.
As well, it has collaborated with the Initiative for Cryptocurrencies & Contracts, IC3, an initiative of university faculty members who focus on Cryptocurrency & Contract.
Binance is looking up to partnering with more incubators firms to increase the growth and adoption of blockchain ideas the society.