The Binance Exchange has launched a crypto credit option in its effort to attract customer deposits. The company has announced the new Binance Lending service, which will become available starting August 28.
Users will be able to borrow USDT, classic ethereum (ETC) and BNB cryptocurrency from Binance to other customers of the platform. The registration of creditors will be made on the principle of first come, first served.
The interest rates for these loans will vary depending on the type of cryptocurrency borrowed.
The interest rate of a crypto credit
The annual interest rate for the initial credit products was set at 15%, 10% and 7% for BNB, USDT and ETC. The loan is granted for a period of 14 days.
Each user’s account on Binance will initially have a ceiling for loan products of 500 BNB, 1,000,000 USDT, respectively 1,000 ETC. In total, 200,000 BNB, 5 million USDT and 20,000 ETC. will be available.
The company also said it would “constantly evaluate new cryptocurrencies and tokens to be accepted as demand-based credit products.” New products will be unveiled on Monday and will be available for subscription on Wednesday.
The launch of the lending service is not surprising. CEO Binance Changpeng Zhao has already announced that the company plans to launch this facility in mid-August.
Binance recently launched the option of margin trading, and the interest rate for this type of loan is 10% for BNB and USDT.
Future plans for the exchange also include launching the trading of crypto futures contracts in the near future.