Binance has announced that it is going to launch its cryptocurrency lending service to customers as from the 28th of August. According to the official announcement made today, traders that hold Ethereum classic, Tether, and Binance coin will get the opportunity to lend out their crypto and earn from interests on Binance lending.
“Binance Lending offers you a new avenue for growing your crypto portfolio beyond trading,” Binance said. “With Binance Lending, storing, holding, and earning crypto at the same time is possible, with just a few clicks.”
Binance stated that the lending products would be given a 14-day period to mature. During this period, traders will not be able to withdraw from the deposited amount. Binance coin, USDT, ETC have been set with different interest rates on lending. Binance coin will have a 15% interest rate, while Tether and Ethereum classic receive a 10% and 7% interest rate.
According to the Binance team, the first interest calculation will run between the 29th of August to the 10th of September after which the interest payout will take place upon maturity of the loan. The interest rates are also subject to updates, and Binance has urged its users to watch out for the updates.
The first phase of this cryptocurrency lending project has been set with a cap of 200,000 Binance coins, 20,000 Ethereum classic tokens, and 5 million USDT. Once all the products are subscribed to, Binance will be legible to pay interests of 1,150 BNB, 53 ETC and 19,178 USDT; which have a total value of $50,000 at the time of writing this.
Apart from the total cap on the exchange, individual Binance users will get a cap on their account, limiting their lending ability. The limits are set at 1,000,000 USDT, 1,000 ETC, and 500 Binance coins.
With crypto industry players battling to dominate the space, this move will help Binance attract new customers and also retain the existing clients. Is it possible for other exchanges to create a similar project to stay in competition? Only time will tell.
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