Binance Labs, the investment arm of the leading cryptocurrency exchanges Binance, announced the investment in Libra Credit is a “decentralized platform of financial services.”
The partnership will allow owners of the token Binance, Binance Coin (BNB), to use BNB as collateral for loans in cryptocurrency or Fiat currency.
Libra Credit is a credit network based on the Ethereum blockchain. The company plans to launch its platform in the third quarter of 2018, and also launch an application for smartphones in the fourth quarter.
According to a press release issued by Libra, the partnership “is aimed at addressing the growing global demand for cryptocurrency liquidity of assets based on the Ethereum blockchain”.
Ella Zhang, chief Executive officer Binance Labs, commented on this partnership:
Libra Credit team has extensive experience and resources in the field of financial services and payment solutions. They intend to implement major changes in the industry .
BNB increased by 8.5% after announcing partnership with Libra
News about the partnership Binance Labs and Libra Credit, the positive impact on the price of BNB. Within two days after the announcement of the partnership on 27 July, BNB has grown by about 8.5% relative to BTC.
However the gains were short-lived and on July 29 the price against BTC has returned to his former position.