Credits secured with cryptocurrencies offered by Binance

Binance Labs is an investment fund created to support the start-ups of blockchains that promote the development of the criptoponde market. One of the recent projects is Libra Credit. Its purpose is to provide those interested with guaranteed loans with BNB cryptocurrencies .

Libra Credit was initially launched as ICO and managed to raise $ 26 million in May 2018.

Currently, there is a desktop creditor platform and a mobile app for customers. With the support of Binance, Libra Credit offers the possibility for users to benefit from secured loans with BNB cryptocurrencies . This facilitates liquidity on the crypto market.

The provision of credit services has the potential to increase public participation in the crypto market. This confirms once again the position of Binance as the largest exchange in the world as a volume. In fact, the company reported $ 300 million in profits in the first six months of this year.

It is not the only project of this type launched lately. The reluctance of banks to support investments in the crypto market has led to the emergence of several projects. These allow cryptocurrencies holders to obtain credits in both cripto and fiat currencies.

An example in this regard is the BlockFi platform. It was supported by Galaxy Bank, owned by Mike Novogratz, for $ 50 million. BlockFi offers loans up to $ 10 million that can be secured with Bitcoin and Ethereum.

An Estonian start-up, CoinLoan, provides a peer-to-peer service that connects cryptocurrencies  owners with those who want to borrow from them, securing transactions.

A similar platform is INLOCK, which allows cryptocurrencies holders to retain their investment (HODL) while at the same time gaining interest on interest rates on credits offered.

In conclusion

Compared to past credit services, such cryptocurrencies -backed loans have major development potential, also offering the advantage that they do not require credit history checks or income proofing