Binance, one of the world’s top crypto-exchanges by trading volume has announced its launch of Binance Lending. This latest move follows the release of margin trading and borrowing back in July.
‘Whether you’re a crypto HODLer trying to maximize gains or a frequent trader who wants to take a break from the action, Binance’s Lending products allow you to accrue interest & increase your token balance regardless of how the market moves.’
Akin to Coinbase, Binance has continued to evolve and develop its service-offering in order to retain and attract new customers to its business.
In a blog post August 26, the firm stated that the lending platform will be open to customers initially on a first come, first served basis. The service will begin August 28 at 07:00 UTC.
Initially US Dollar Tether (USDT) and Binance Coin (BNB) will be the only crypto-assets used for the lending service but the company has already hinted that others will soon be added to the list.
‘We intend to continue enhancing and introducing new products to Binance Lending soon after launch. We will add more to the list of cryptocurrencies eligible for lending.’
When live, customers will be able to decide how many tokens they want to lend at time of subscription. Binance have set a hard cap of 500 BNB per account for BNB-denominated lending products. The hard cap for USDT will be set at 1,000,000.
In order to participate users will need to ensure they have passed level 2 User Verification on the Binance platform.
The mechanics of the lending system are simple enough. Users will be asked to deposit funds into their subscribed lending product and hold for a minimum period (14 days), users are then able to withdraw on their redemption date along with the accrued interest. The annualized interest rate for BNB deposited is 15% and 10% for USDT.
The launch of ‘Binance Lend’ follows a period of expansion and diversification for the Japanese crypto-currency exchange. Is a ‘futures trading’ product on the horizon.