In an effort to attract customer deposits, one of the world's largest cryptocurrency exchanges, Binance, launched a lending business. The company said that the Binance Lending service will be available for subscription starting at 6:00 UTC on August 28.
Initially, users will be able to lend the following coins: USDT pegged stablecoin, ethereum classic (ETC) and BNB. Thus, they will be able to receive interest payable after two weeks.
The annual interest rate for initial loan products with a 14-day fixed maturity was set at 15%, 10% and 7% for BNB, USDT and ETC, respectively.
The maximum level of fundraising is 200,000 BNB, 5 million USDT and 20,000 ETC. If all the highs are fully selected by customers, Binance will pay interest in the amount of 1,150 BNB, 19,178 USDT and 53 ETC, which at the time of publication is about $ 50,000.
Each user’s account will have a limit for credit products: 500 BNB, 1,000,000 USDT and 1,000 ETC, respectively.
Meanwhile, the recently launched Binance margin trading service charges 109% and 10.0375% per annum for users who borrow BNB and USDT, respectively.
And just a few hours before the announcement of the launch of this direction, Binance announced that starting from August 27 it will increase the interest rate on margin loans for ETC from 7.3% to 14.6%.
The company said it would "constantly evaluate the demand for the possibility of adding new coins and tokens as loan products."
The launch of this product is another step of Binance in the desire to diversify its business areas in order to attract and retain users.