Binance venture capital arm Binance Labs announced on Thursday, July 20, plans to invest $10 million in Radiant Capital. The announcement revealed that Binance Labs plans to support lending and borrowing services on the Radiant platform.
The investment will be utilized in expanding Radiant connection to other blockchain network. The report demonstrated that the $10 million will support Radiant in expanding borrowing and depository services.
Radiant Capital Receives $10M from Binance Labs
Firstly the Radiant group plans to strengthen its network capability by connecting its omnichannel interoperability protocol centered on LayerZero to another blockchain. The lending company will connect to other blockchain to support its existing Ethereum-focused network, including BNB Chain and Arbitrum. Additionally, a significant amount the investment will be rerouted in product development aiming at reducing transaction costs.
Previously, the Radiant team had announced plans to bring 100 million users to decentralized finance (DeFi). This has prompted the lending company to invest in improving the Radiant protocol through Ethereum mainnet development, abstracted repayments, and diversifying the collaterals portfolios.
An announcement conveyed by the head of Binance Labs, Yi He, revealed that the Binance Labs latest investment in Radiant marks a significant milestone in the ongoing push for the mass adoption of decentralized finance (DeFi) platforms.
In support of this, the founder of Radiant Capital, George Macallan, was delighted to announce the strategic partnership with Binance Labs. The executive believes that collaborating with Binance Labs will enable Radiant to expand its protocol to different chains.
He added that the partnership will support the protocol to scale and restore utility to the Radiant ecosystem. Macallan anticipates that Binance and Radiant would leverage their expertise, resources and strategies to support the protocol.
Radiant Capital Set to Improve DeFi Platfroms
Surprisingly Binance Labs joined other influential figures to push for cryptocurrency adoption through investment in blockchain and crypto technologies. A few months ago, Binance Labs invested millions to support Cosmos Labs in building a “Neutron Platform.”
During the Cosmos fundraising, Binance Labs led other firms, including CoinFund, Nomad, and LongHash, to generate a capital of $10 million. The Cosmos team will use the investment to develop Neutron, a smart contract blockchain that will be used to connect to different chains.
The Cosmos investment marked a significant move for Radiant to expand to more chains centered on the Ethereum Virtual Machine (EVM). An EVM technology supports multiple chains on the smart contract to interact easily with each other.
The development by Radiant to connect to more chains aligns with the company mission statement, “growing into a cross-chain money market.” The company core value has inspired Radiant to support ten digital assets in the bid to revolutionize the DeFi sector.
A review of the Radiant’s website demonstrated that the firm’s best-performing digital tokens include Arbitrum (ARB), Ethereum (ETH), DAI, USDC, and others.
Besides the efforts made by the Radiant group to bridge to different Ethereum chains, other companies are exploring ways to improve efficiency and reduce transaction cost. Also, tech developers have teamed up resolve challenges on the Ethereum mainnet. A few months ago, the Ethereum team failed to overcome technical issues that resulted in suspending withdrawals.
The Ethereum team claimed that the base layers experienced high activity that challenged developers to examine ways to support the network. After analyzing the mainnet challenges, the Ethereum team agreed to integrate a layer 2 scaling solution, including Arbitrum, which is crucial in increasing speed and reducing transaction costs.
