Binance Will be Launching Cryptocurrency Lending This Month
- Initially users will be able to lend ETC, USDT, and BNB, on which they can earn interest.
- The new service will be available for subscription from 6:00 UTC on 28 August, and will last until 0:00 UTC on 29 August, on a first come first served basis.
Major cryptocurrency exchange Binance will be launching a lending business, called Binance Lending, the company mentioned in an official announcement on 26 August.
According to the announcement, the subscription period for the new service will be from 6:00 UTC on 28 August, and will last until 0:00 UTC on 29 August, on a first come first served basis. Initially users will be able to lend 3 different cryptocurrencies on which they can earn interest, them being Tether (USDT), Ethereum Classic (ETC), and Binance Coin (BNB).
The lending products will initially have a 14 day fixed maturity term, with BNB having the highest annualized interest rate of 15%, while USDT and ETC have 10% and 7% respectively. The total subscription cap has been set at 200,000 BNB, 10 million USDT, and 20,000 ETC, while a user’s individual account hard cap is set at 500 BNB, 1 million USDT, and 1,000 ETC.
The announcement also specifies that the first interest calculation period will be from 29 August until 10 September, with interest payout taking place immediately after the loan term matures. The future phases annualized interest rates will also be adjusted, based on the market reception from this phase. Binance also gave an example of how interest will be earned:
“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.”
The new service was first announced by Changpeng Zhao, Binance’s CEO, during a London Meetup on 2 August. Even though the service was officially announced today, at the time Zhao said that the exchange will be launching Lending around mid-August.
The exchange has also updated its Lending FAQ today, adding a “Binance Lending Service Agreement” section. It claims that “Binance Lending assets will be used in cryptocurrency leveraged borrowing business on Binance.com”.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.