Libra Credit, an online lender in the cryptocurrency space, has received an investment from Binance Labs – the tech incubator and VC portion of Binance – one of the largest cryptocurrency exchanges in the world.
According to a post on Medium, the agreement enables BNB holders to receive loans collateralized by the crypto. So Libra Credit will lend fiat and digital assets to users who pledge BNB.
Libra Credit was co-founded by former PayPal execs Lu Hua and Dan Schatt – so they have good experience in payments and providing credit online. Libra Credit is an online lending platform that leverages proprietary credit scoring algorithms with blockchain technology.
In May of this year, Libra received $16 million investment from institutional types during their private token sale. Participating in the offering were 500 Startups, DHVC, GBIC, Alphabit Fund, Dekrypt Capital, FBG Capital, DFund, BlockTower, Signum Capital, 8 Decimal Capital, Crypto Parency and Block VC. Libra Credit is transforming the lending industry by leveraging its proprietary credit scoring algorithms with blockchain technology.
There are a few platforms seeking to do the same but the rapid growth of digital assets has created opportunity for ancillary services – such as online lending. Libra Credit is said to be “building a distributed lending ecosystem that facilitates credit at anytime and anywhere.”
“They are committed to make long lasting impacts in the industry,” said Zhang.
Many industry types expect blockchain to replace much of the infrastructure of financial services. Providing access to credit is an absolutely enormous opportunity as the global debt markets are huge.