Binance Moves into the Loans Department With Former PayPal Leads

Binance, the world’s largest cryptocurrency exchange, as moved in the world of loans by investing in a decentralized global lending network called Libra Credit. Libra Credit allows customers to borrow fiat and cryptocurrency by using Binance Coin (BNB) as collateral.
Libra Credit’s development team is comprised of former PayPal fintech engineers. The company aims to use machine learning and blockchain technology to modernize the lending sector.
Ella Zhang, CEO of Binance Labs, stated:
“The Libra Credit founding team has a wealth of experience and resources in financial services and payment solutions. They are committed to make long lasting impacts in the industry.”
Libra Credit, was originally a San Francisco-based startup founded in 2017. The company’s founders Dan Schatt and Lu Hua have a pedigree in fintech payment solutions. Schatt was PayPal’s former general manager of Financial Innovations. Hua also comes from PayPal as an engineer, and has previous experience as the founder of Mo9, a Chinese credit service provider for mobile games and virtual goods that service millions of video game players in China.
Their new endeavor, Libra Credit, is designed to liaison between the standard financial system and the emerging cryptocurrency market. The loan structure will allow users to borrow crypto-to-fiat allowing the collateralization of cryptocurrencies, a crypto-to-stablecoin loan which will allow the user to hedge price volatility, and a crypto-to-crypto loan which will allow the borrowers to pledge various altcoins for larger more mainstream coins that have better liquidity. Some of these loans can be made without leaving the market or sacrificing crypto positions.