Cryptocurrency exchange giant Binance announced on Monday, August 26, it will be launching a new service called “Binance Lending,” a crypto lending platform.
With the said feature, users can now earn interest by lending their crypto holdings over a period of time.
According to a blog post published by Binance, through the said service, users can now be able to lend their USDT, ethereum classic (ETC), and BNB to earn interest, payable from Aug 29 to Sept 11.
In the same source, the company specified a 15% annualized interest rate for the initial BNB lending product, 10% for USDT, and 7% for ETC, with an initial 14-day fixed maturity term. The maximum cap per account is also initially set at 500 BNB, 1,000,000 USDT, and 1,000 ETC, respectively.
The service will be available on a first-come, first-served basis, starting from Aug. 28 to Aug. 29.
“Binance Lending is simple and intuitive to use. Users can subscribe to any lending product and earn interest, it’s as easy as that. The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves,” said Changpeng Zhao “CZ”, CEO of Binance.
The recent announcement of the company has sparked a chain of reaction from experts, with most saying it’s a bad move to guarantee a fixed interest rate for financial products.
Binance, however, assured that they will be “constantly evaluating new coins and tokens to support as lending products based on demand.” New products are also promised to be revealed weekly on Monday.
The recent launch is believed to be another move of Binance to expand its business lines and attract more users. Earlier this year, the cryptocurrency exchange giant has launched a 2.0 version of its margin trading and has revealed plans to add future trading on its platform.