Binance entered the market of lending. Its latest investment in blockchain startup Libra Credit allowed to incorporate BNB tokens into the lending platform, developed by this startup. Now anyone, holding BNB tokens, will be able to use them as collateral to borrow fiat and crypto money
Another void in crypto space being filled. Nowadays, crypto startups try to implement all features of traditional banking services: payments, storing funds, exchanging currencies on-the-go, issuing debit cards, and now, giving loans. Lending in crypto is the same as in traditional banking, however, it requires a pledge, a collateral, to be placed in a smart contract, it can’t give non-backed loans yet.
We’ve seen some projects that issue crypto loans, like SALT, Micromoney or Lendoit, but they don't have the large influence, like Binance. It continues this year's trend of crypto exchanges expanding to all traditional areas, and becoming new types of banks. Now it's possible that we'll see Binance promoting this service, and it will facilitate the access to borrowing money during the periods of market decline.
What should you do if you need some money, but you don't want to sell at low prices? Pledge it! Smart contracts will make the process totally unbiased, and you will be able to get you crypto back when you'll pay back the loan. What next? Insurance on blockchain?