Binance seems to be on the news every day. After claims of a KYC leak that occurred recently, the prominent and influential cryptocurrency exchange has announced the inclusion of a service for its customer base, one that they will surely appreciate given its potential benefits.
The platform developed and launched a lending business, in an effort to entice clients’ deposits. One of the planet’s largest crypto exchanges by trading volume, Binance stated this week that Binance Lending for clients that want to subscribe from August 28th, exactly at 6:00 UTC, under the first-come, first-served model.
USDT, Ethereum Classic, and Binance Coin
Starting from that moment, users that so decide will have the ability to lend their dollar-pegged USDT, Ethereum Classic (ETC,) and the platform’s native cryptocurrency, the Binance Coin (BNB) with the intention of gaining interests that will be payable from August 29th to September 11th.
For now, the platform set a 15% rate for annualized interest rate for BNB, a 10% rate for the USDT assets, and a seven percent rate for ETC. They all have a 14-day fixed maturity term.
As for the total subscription cap initially set by the Binance platform, it will be 200,000 BNB, 5 million USDT and 20,000 ETC. In the event that all of those get subscribed completely, the exchange will have to pay out interests of 1,150 BNB, 19,178 USDT and 53 ETC, roughly $50,000 at the moment of writing this article.
Details of the Offering
To maintain a level playing field, each user’s account present on Binance will be hard-capped for BNB-, USDT- and ETC-, at 500 BNB, 1,000,000 USDT, and 1,000 ETC each. Meanwhile, customers that borrow BNB and USDT will be charged an annualized interest of 109% and 10.0375 as a maximum by the margin trading business that the exchange launched to the market recently.
A couple of hours prior to the launch of the lending business, Binance stated on its web page that it will increase the annualized margin borrow interest rate for Ethereum Cash: it will go up from 7.3% to 14.6%, from August 27th.
According to Binance, it will be “constantly evaluating new coins and tokens to support as lending products based on demand,” with new offerings being revealed on Mondays and becoming available for lending on Wednesdays.
An Ever-Growing List of Services
Whilst the launch of a lending service is extremely helpful given the interest rates and potential earnings, the development does not come as a surprise, as Binance’s CEO Changpeng Zhao had revealed the firm’s plans to come up with such a platform days ago.
In a market that is becoming more competitive than ever, Binance’s efforts to increase its offerings towards its customer base are noteworthy. The company is working to diversify its catalog with the intention of luring even more clients to the already big ecosystem.
Just weeks ago, the exchange presented margin trading and borrowing, and there are plans to add futures trading services in the not so distant future.
By Andres Chavez