Binance has teamed up with startup Cred in a partnership that will see the crypto lending and borrowing platform offer its services to Binance users.
The deal is part of efforts by the two firms to help push forward the idea of decentralized financed. The Cred/Binance agreement allows the California-based startup to migrate a fraction of the native “LBA,” an ERC-20 token, to Binance’s proprietary blockchain Binance Chain.
An announcement released on Wednesday states that the migration will allow Cred to become the blockchain’s official platform for borrowing or lending crypto.
Binance has previously noted that its Binance Chain network provided fast transaction and is highly scalable; something the crypto exchange’s chief growth officer said would benefit Cred. According toTed Lin, the Binance Chain blockchain’s “one-second block time,” could see Cred scale its services so as to reach more markets.
The crypto lending and borrowing firm will also be able to leverage the power of Binance’s blockchain to guarantee “fast, efficient and effortless” transactions.
Cred provides users with access to two services the farm labels as “Borrow” and “Earn.”
The “Borrow” service allows Cred customers to borrow fiat currencies by using their crypto holdings as collateral. For the “earn” service, users get interest rates on their crypto deposits as well as on their fiat currencies.
Investors who back the U.S.-based company include Arrington XRP Capital and Binance Labs. Earlier this year, the firm announced plans for a euro-pegged stablecoin. The move saw it strike alliances with Bittrex as well as four blockchain companies to facilitate the project.
According to information in the press release, Cred has managed to secure more than $300 million as its current lending capital.
The partnership between Binance and the platform continues the crypto exchange’s rapid efforts at expanding its services. It adds to recent moves like launching of a decentralized exchange and the unveiling of a fiat-to-crypto platform in Singapore.