Binance, one of the world’s biggest digital asset exchange is launching a crypto lending platform later this month in its bid to attract customer deposits.
As detailed in a statement on its website, the new offering, dubbed “Binance Lending,” will allow holders of Binance Coin (BNB), Tether (USDT) and Ethereum Classic (ETC) stablecoin to earn interest on their funds over a two-week period. The Binance crypto lending service will be available on a first-come, first-served basis, starting from 6:00 am UTC on Aug. 28 to 12:00 am UTC on Aug. 29.
Binance crypto lending services offer interest-earning opportunities
According to Binance, the annualized interest rate for the initial BNB lending product, which has an initial 14-day fixed maturity term, is set at 15%. The maximum cap per account is initially set at 500 BNB and 1,000,000 USDT respectively.
Binance users can decide 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, it added.
“Binance Lending is simple and intuitive to use. Users can subscribe to any lending product and earn interest, it’s as easy as that.The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves,” said Changpeng Zhao “CZ”, CEO of Binance.
The new offering will be “constantly” evaluated to add new coins and tokens based on demand and value, the exchange said.
Yesterday, Binance also updated its “Lending FAQ” website page, by adding “Binance Lending Service Agreement,” saying that the new offering will be used in cryptocurrency leveraged borrowing business on Binance.com.
Crypto lending sector booms
The cryptocurrency lending sector is booming. Earlier this month, crypto credit assessment startup Graychain published a report, saying the sector is currently valued at around $5 billion. However, lenders have earned back only $86 million (or 1.83 percent) in interest.
Per the report, two lending players – Celsius and Genesis – have the highest volume with 65% of loan originations.
Last week, AtoZMarkets reported on the newly introduced Binance open blockchain project called “Venus,” with the aim of developing localized stablecoins and digital assets pegged to fiat currencies across the globe. More recently, the company announced that it will offer a free, lifetime VIP membership account to all its affected users following the leak of its customer’s KYC (Know Your Customer) data.
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