Binance To Start Crypto Lending Service Tomorrow
Top cryptocurrency exchange Binance intends to unveil its first crypto lending product tomorrow. Clients of Binance, holding Binance Coin (BNB), Tether (USDT), and Ethereum Classic (ETC), will be able to offer their assets on monthly interest. The service offering the facility has been named Binance Lending.
The clients of Binance can subscribe to the service in the next two days. The assets are offered on lending platform with a 14-day expiry period. BNB will carry the highest annual interest rate of 51% while the interest rates set for ETC and USDT are 7% and 10%, respectively.
On August 29, the platform will begin with the interest rate calculation for the first contract and settlement will be carried out on September 10.
Binance has pointed out that interest payments will be made soon after the loan term expires. The most important point is that the annual interest rates for forthcoming phases will be modified as per market’s response to the product in the first phase.
Binance has illustrated with an example:
“If User A subscribes to 10 lots of BNB Lending (total lend of 100 BNB), the interest earned at maturity date will be 0.057534 BNB x 10 = 0.57534 BNB.”
Notably, Binance amended its Lending FAQ (frequently asked questions) page by including a new section titled “Binance Lending Service Agreement.” The cryptocurrency exchange has further stated that the Binance Lending assets will be used in cryptocurrency leveraged borrowing business on Binance.com.