Binance, the world’s largest cryptocurrency exchange by adjusted trading volume, is introducing a new digital asset-based lending business in order to attract more customer deposits.
The Malta-based firm is launching a first-come, first-served crypto lending service via Binance Lending, which will be accessible for customer subscription beginning at 6:00 UTC on August 28.
According to the announcement,
“Whether you’re a crypto HODLer trying to maximize gains or a frequent trader who wants to take a break from the action, Binance’s Lending products allow you to accrue interest & increase your token balance regardless of how the market moves.”
Traders can lend their USD-pegged stablecoin Tether (USDT), Binance’s native BNB token, or Ethereum Classic (ETC). Lending these crypto assets will allow traders to earn “guaranteed” interest, which will be payable for the first interest calculation period from August 29 to September 11.
The annual interest rates for these digital assets are fixed at 15% for BNB, 10% for USDT and 7% for ETC. These rates are set according to a 14-day fixed maturity term.
|Digital Asset||Total Subscription Cap||Individual Cap||Annualized Interest Rate||Lot Size||Interest Per Lot at Maturity|
|BNB||200,000 BNB||500 BNB||15%||10 BNB||0.057534 BNB|
|USDT||10,000,000 USDT||1,000,000 USDT||10%||100 USDT||0.383561 USDT|
|ETC||20,000 ETC||1,000 ETC||7%||1 ETC||0.002685 ETC|
You can check out the full announcement here.