Binance, the world’s largest exchange in terms of market volume, has launched a cryptocurrency loan service in an attempt to attract more customer deposits.
Recently the company said through an announcement that the customers’ subscription to Binance Lending will be available from August 28 at 6:00 UTC, and will be by order of arrival. Initially, users will be able to lend USDT, the USD-anchored stablecoin, ETC (Ethereum Classic) and the Binance cryptocurrency, BNB, with the purpose of earning interest, payable from August 29th until September 11th.
The annual interest rate for the first credit products with a fixed term of 14 days has been set at 15% for BNB, 10% for USDT and 7% for ETC respectively.
Binance offers a total subscription limit of 200,000 BNB, 5 million USDT and 20,000 ETC. If all the quotas planned for the initial services are filled, Binance would pay interest of 1,150 BNB, 19,178 USDT and 53 ETC, which is valued around USD 50,000, at the time of closing of this edition. The account of each Binance user will have a maximum initial limit for the BNB, USDT, and ETC loan services of 500 BNB, 1,000,000 USDT, and 1,000 ETC respectively.
Meanwhile, the margin trading service recently launched by Binance charges users who borrow BNB and USDT an annual interest of as much as 109% and 10.0375% respectively.
Hours before the announcement of the cryptocurrency loan service, Binance said on its website that as of August 27 they would increase the annual interest rate for the request for loans for ETC margin from a previous 7.3% to 14 , 6%.
The company said they will be “constantly evaluating new currencies and tokens to include in the loan service according to demand” and that weekly, new products will be revealed on Mondays, and that Wednesdays will be the days when they will be available for subscription. These plans may not be surprising to many, given that Changpeng Zhao mentioned that the company was planning to launch a loan business by mid-August, he said during an event recently held in London.
This launch is another of Binance’s movements in its attempt to diversify the lines of its business and a way to retain its users weeks after the formal launch of the margin and lending trade service in July. In addition to the disclosure of plans to add futures trading on its market platform.