Cred Decentralized Crypto Lending Platform Inks Deal with Binance to Become Official Lender
- Cred is a ‘decentralized lending platform’ that allows its users to rope in quarterly interest returns of around 10% on their crypto-shares.
- By signing this contract, Cred is essentially looking to increase its global market reach — especially within Asia and other smaller European nations.
As per an all-new agreement signed between Binance — one of the world’s largest cryptocurrency exchange platforms — and crypto lending firm Cred, the two companies will now work together to process over $300 million worth of credit transactions.
For those of our readers who may not be aware of Cred, the firm provides its clients with a ‘decentralized lending platform’ that enables “stablecoin issuers, exchanges and wallets” to procure an interest rate of up-to 10% on their crypto-shares.
Thank you @binance and @cz_binance for your support of @ihavecred! We’re happy to be the first crypto lending project on Binance Chain. We look forward to continuing our partnership on many future projects.https://t.co/rVLeIgvXRP pic.twitter.com/b5DP2dBK7b
— Cred (@ihaveCred) May 29, 2019
A Closer Look at the Agreement
According to the deal, Cred has agreed to send over a massive chunk of its existing ERC20 LBA tokens over to the Binance ecosystem. In addition to all this, it is also being reported that Cred will henceforth serve as the “official lending and borrowing portal” for the DeFi platform.
- In the past, Cred has signed similar agreements with the Tron Foundation and Bitcoin.com. As a result of these partnerships, the firm has allowed its core clientele to acquire regular interest based returns on their Bitcoin, Bitcoin Cash and TRX holdings.
- Cred users are usually paid “every three months”, however, the company also offers its clients with other rollover options that allow them to receive the best rates when they “stake their native LBA tokens”.
When asked to comment on his company’s latest partnership, Binance’s Ted Lin was quoted as saying:
“We have come together 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”.
Lin’s sentiment was echoed by Cred President Dan Schatt who too stated in a recent interview that with the two firms coming together, they would help bring a host of ‘decentralized financial services’ to the masses.
In closing out this piece, it should be pointed out that Binance Labs — the crypto exchange’s core research wing — made its first investment in Cred last year. With that being said, it now remains to be seen how the future plays out for both of the aforementioned parties.