Binance, the world’s largest cryptocurrency exchange by trading volume, has come into a partnership with Cred, a provider of crypto borrowing and lending which claims over $300 million in credit facilities.
Cred offers a decentralized lending platform that allows customers of stablecoin issuers, exchanges, and wallets to earn up to 10 percent interest on their crypto-shares.
Per its agreement with Binance, the San Francisco-based startup will migrate a portion of its ERC20 LBA tokens to Binance Chain, the mainnet of the major cryptocurrency exchange. Cred will be also named the official lending and borrowing platform of the decentralized finance (DeFi) ecosystem, which includes lending and insurance platforms, marketplaces, and investment engines.
The company has signed similar partnerships with the Tron Foundation and Bitcoin.com, enabling Bitcoin, Bitcoin Cash, and TRX holders to acquire an interest in their crypto holdings.
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Users of Cred are paid interest in stablecoins every three months for committing to six months of default commitments. These terms could be broadened according to their preference, and customers have the option to rollover assets for additional periods, and they receive the best rates when staking the LBA, the native token for Cred. The principal is paid back in the crypto amounts that were initially received.
Binance which invested in Cred from inception
When explaining about the partnership, Ted Lin, Chief Growth Officer of Binance said they are working with Cred “to help scale their efforts to more markets and users around the world through the power of the Binance Chain, which has a one-second block time and will ensure transactions and interactions by Cred’s users will be fast, efficient and effortless”.
Cred President Dan Schatt added that they are excited to continue their partnership with Binance, which invested in the company from inception. “We are very happy to support Binance Chain and continue to collaborate with Binance to bring decentralized finance to everyone in a sustainable way,” added Cred co-founder.
Binance Labs, the investment arm of Binance, has invested in Cred back in 2018. As part of the relationship, Cred lends fiat and crypto denominated assets to users who pledge BNB as collateral