World’s leading cryptocurrency exchange, Binance is venturing into the crypto lending sector, through a new initiative known as Binance Lending.
As confirmed in a blog post on Monday, Binance Lending is poised at offering interest-earning opportunities for three cryptocurrencies, which includes, Binance Coin (BNB), Ethereum Classic (ETC) and stablecoin Tether (USDT).
The development is coming as a value-added service to the users holding the idle cryptocurrencies, the exchange said, adding that while users lend out their holdings, they earn interest on the loans.
In a more precise term, the holders of BNB, ETC, and USDT under the Binance Lending platform, will earn interest on their funds which will improve their token balances.
The lending service will be available on a subscription basis, scheduled to begin from 6:00 am UTC on August 28 to 12:00 am UTC on August 29, according to the post.
Binance users have the option to decide on the number of tokens they wish to lend out at the time of subscription. The funds can be retrieved with “guaranteed” interest after the designated subscription period, the exchange added.
Also, Binance said the annualized interest rate for the initial lending is set at 15% for BNB, 10% for USDT and 7% for ETC. The interest will be paid out immediately after a 14-day maturity period.
“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 CEO of Binance, Changpeng Zhao said, adding that, “The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves.”
According to Binance, the new offering will be evaluated constantly in order to add new coins and tokens based on demand and value.
Meanwhile, the BNB balances committed into Lending products will be included in each user’s daily BNB balance calculations for Binance Launchpad and other daily calculations.