Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has launched a lending business called ‘Binance Lending’ in its bid to attract customer deposits. The exchange announced that Binance Lending would be available for subscription as of August 28th.
According to the announcement, lending products will have an initial 14-day period. Its native token, Binance Coin (BNB), will have the highest annual interest rate of 15%, whereas the rates for the USD-pegged Tether (USDT) and Ethereum Classic (ETC) are 10% and 7%, respectively, according to a report by Cointelegraph.
Binance has rolled out a total subscription capped at 200,000 BNB, 5,000,000 USDT, and 20,000 ETC. Once all the initial products are fully subscribed, Binance would pay out interests of 1,150 BNB, 19,178 USDT, and 53 ETC (each worth about US$50,000 at the time of the press release).
Each user account on Binance will have an initial hard cap for BNB-, USDT-, and ETC-denominated lending products at 500 BNB, 1,000,000 USDT, and 1,000 ETC, respectively.
Binance has launched a margin-trading business that charges users who borrow BNB and USDT an annualized interest rate of 109 percent and 10.0375 percent, respectively.
As per the announcement, Binance users can select the number of tokens they want to lend at the time of subscription and will be able to retrieve funds with “guaranteed” interest after the designated subscription period.
“Binance Lending is simple and intuitive to use. Users can subscribe to any lending product and earn interest, it’s as easy as that,” said Changpeng Zhao or “CZ”, CEO of Binance. “The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves.”
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