Binance Launches Lending on 3 New Crypto Assets; BTC, ETH, & ADA
The world’s leading cryptocurrency exchange has launched the second phase of Binance Lending Products on September 4 at 6.00 AM (UTC), announced Binance on September 3.
These lending products will be for a fixed term of 14 days and 28 days.
This time, Binance has added more crypto assets to its list including Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).
Binance Now Offering 6 Lending Products
For the products with a maturity period of 14 days, the lowest interest paid is on the leading cryptocurrency Bitcoin at 3%, followed by Ethereum and Cardano both at 6% and then ETC and USDT with 7 and 8% respectively.
Binance puts a subscription cap of 1,000 BTC, 10,000 ETH, 10 million ADA, 20,000 ETC, and 20 million USDT. If the product gets fully subscribed, Binance would pay out 0.00001151 BTC, 0.002301 ETH, 2.301369 ADA, 0.002684 ETC, and 0.306849 USDT.
Each user’s account on the exchange will have a hard cap of 10 BTC, 100 ETH, 500,000 ADA, 1,000 ETC, and 1 million USDT.
The annualized interest rate for the lending products with a 28-day fixed maturity term has been set at 10 percent, 8.25 percent, and 3.25 percent for BNB, USDT, and BTC respectively.
The total subscription cap for this maturity period is 200,000 BNB, 10 million USDT, 500 BTC for which Binance will pay out the interest per lot of 0.076712 BNB, 0.632876 USDT, and 0.00002493 BTC at maturity.
New Coins and Tokens, Based on Demand, Every Week
The subscription format for the same is the first-come-first-served basis that will take place from September 4 6:00 AM (UTC) to September 5 0:00 AM (UTC).
The exchange will start calculating the interest on the crypto assets right on the day the subscription period ends that is September 5 0:00 AM (UTC).
As for the interest payout time, it will be immediately after the loan term matures.
Last month Binance launched the lending business in an attempt to attract customer deposits.
First made available on Aug 28, the exchange started with US dollar pegged USDT, Ethereum Classic (ETC) and Binance’s native cryptocurrency BNB and allowed its users to earn interest on these crypto assets from Aug. 29 to Sept. 11.
At the time, the company said it will be “constantly evaluating new coins and tokens to support as lending products based on demand.” New products, it stated will be revealed weekly on Monday and to be available for subscription on Wednesday.
This step has been yet another move by the Binance to diversify its business after rolling out margin trading and borrowing in July and further revealing its plans to add futures trading on its platform.