Crypto lending services are now launched by Binance as one of the largest cryptocurrency exchanges by trading volume in a bid to attract more customer deposits so let’s find out more about it in the latest cryptocurrency news below.
The company made an announcement back on Monday that Binance Lending will be now available for customer subscription starting from 6:00 UTC on August 28th on the first-come, first-served basis. At first, the users will be able to lend their US dollar-pegged USDT, Ethereum Classic and the Binance BNB cryptocurrency in order to earn some interest which will be payable from August 29th too September 11th. The annualized interest rate for the initial lending products with a 14 day fixed term has been set at 15 percent at the beginning but also on 10 percent and seven percent for BNB, USDT, and ETC. Binance now offers a total subscription cap of 200,000 BNB and 5 million USDT and 20,000 ETC. if all of the initially planned products get fully subscribed, Binance would have to pay out interests of about 1,150 BNB, 19,178 USDT and 53 ETC which is worth more than $50,000 as of press time.
Each account on Binance will also have an initial hard cap for BNB, USDT and ETC-denominated crypto lending products at 500 BNB, 1,000,000 USDT and 1,000 ETC. In the meantime, the newly launched margin trading business platform of Binance charges its users who borrow BNB and USDT an annualized interest of more than 108 percent and 10.0375 percent as well. Just hours before the crypto lending services were announced, Binance stated on their website that they are starting the launch on August 27th which is expected to increase the annualized margin borrow interest rate for ETC from the previous 7.3 percent to 14.6 percent. The company also stated it will be constantly evaluating new coins and tokens to support as lending products are based on demand and the new products will be revealed weekly on Monday.
As per the reports in the best cryptocurrency news sites, the plan might not be entirely surprising to some given that the CEO of the company Changpeng Zhao mentioned during the recent London event that the company was planning to launch a lending business somewhere in the middle of August. The launch is another move of the company in a bid to try and diversify the products in order to attract and retain users weeks after it formally rolled out the margin trading services.
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