Leading cryptocurrency exchange Binance has revealed its lending product with the CEO Changpeng Zhao describing it as being as easy as “subscribing and earning interest.” This new offering dubbed ‘Binance Lending’ is really a product for cryptocurrency hodlers with balances in Binance Coin [BNB], Ethereum Classic [ETC] and USD-pegged stablecoin Tether [USDT] they are not using immediately. In addition, the exchange is offering extremely attractive interest rates. The exchange has guaranteed payments of 15%, 10% and 7% for the BNB, USDT and ETC deposits respectively over a period of a year.
However, the product is initially capped for lenders. The exchange announced a 200,000 BNB cap, 5,000,000 USDT, and 20,000 ETC limits to lenders which means that deposit slots will be up for grabs on a first-come first-served basis. In addition, each lender for BNB will be individually capped not to lend more than 500 BNB. For those interested in lending USDT and/or ETC, they will be allowed to lend as much as 1,000,000 USDT and 1,000 ETC on the higher side. The funds to be lent are not dictated and therefore users will be able to choose the number of tokens they are interested in placing on the lending accounts to earn interest.
“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 CZ adding that “the interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves.”
Initially, CZ had preannounced the new product on Twitter teasing his close to 500,000 followers on an oncoming announcement on Monday morning. He wrote “Would you like to earn #crypto while you sleep? Keep an eye on @binance today.” The announcement followed a few hours later. The product will be available starting on Wednesday, August 28th starting at 6.00 UTC.
Just before the announcement, Binance made another announcement revealing a revision on the lending rates to borrowers of ETC on the margin platform. Starting on Tuesday, August 27th, the rates will be doubled from 0.02% to 0.04% daily interest which equates to about 14.6% up from 7.3% per year.
This latest launch is a move by Binance to expand its product offering following the recently launched margin trading product that was revealed in July. Soon to follow, is the crypto futures trading product whose launch has not been disclosed as of yet but it should be happening soon.
