Binance is one of the most prominent firms within the crypto space both in terms of being a crypto exchange as well as many of their other ventures. The company has had a lot of new development in 2019 such as the launch of their decentralized exchange and so on and they show no signs of stopping soon.
One of their latest developments there was the announcement of their first crypto lending service which will be available from August 28, 2019, according to an official announcement from August 26, 2019. According to the announcement, those who hold binance coin, ethereum classic and tether will be able to lend their assets and earn interest through Binance Lending, which is the name of the new service.
Lending coming to Binance
These new services will be available to customers for subscription from August 28, 2019, and the firm has stated that the lending products will have an initial 14-day period along with different interest rates for different tokens.
BNB will have an interest rate of 15 percent while the rate for USD tether will be 10% and the rate for ETC will be 7 percent. Interest calculation will first take place from August 29 to September 10. Interest payout will also take place immediately after the loan term matures and the annualized rate for upcoming phases will be adjusted based on market reception during this first phase of the service.
“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 company website said.
A new section was also added to the Binance FAQ page called the Binance Lending Service Agreement which states that the Binance lending assets will be used in cryptocurrency leveraged borrowing business on their website. While exchange platforms for cryptocurrency are commonplace, it will be interesting to explore a new phase of the cryptocurrency industry in crypto lending which could prove very lucrative as well as beneficial for users should this initial phase be a success.