Dubbed as the world’s largest cryptocurrency exchange company, Binance has announced its partnership with the cryptocurrency lending platform, Cred. The business partnership of the two companies was announced last Wednesday, May 29, 2019.
According to a report by Business Wire, the joint venture of these two industry giants comes from the desire to “spur the decentralization of finance.” Part of the businesses’ agreements is for Cred to transfer a particular number of its ERC20 LBA tokens to Binance. Following this, Cred will use Binance’s blockchain network titled Binance Chain.
Both companies are expected to experience exponential benefits in their partnership. While the crypto lending platform will use Binance’s blockchain system, Binance will expand its reach and operations notes Coindesk. Based on the report of Coindesk, chief growth officer for the cryptocurrency exchange company Ted Line said that they will provide more effective, efficient, and seamless transactions to its users.
As a cryptocurrency lending and borrowing platform, the said company offers two basic services, namely “Borrow” and “Earn.” Under these services, Coindesk reports that customers will be able to use currencies with crypto money as collateral as well as earn based on given rates on cryptocurrencies and flat currencies.
At the time of writing, Coindesk states that the crypto lending platform has also teamed up with other industry firms, with Bittrex one of the more notable firms in the list.
Business Wire reports that Cred is a licensed loaning facility based in California. The company provides competitive lending and borrowing rates to customers. Through its platform, crypto holders are able to loan their accounts and assets to interested individuals while earning modest profits, says the Crowdfund Insider.
Apart from Binance and its blockchain ecosystem, some of the prominent firms that support Cred include Blocktower, 500 Startups, and Arrington XRP Capital.