Binance introduces interest-generating crypto lending for users for the first time

The large crypto exchange Binance allows its users from 28 August 2019 for the first time the interest-yielding credits of cryptocurrencies.

As stated in the official announcement of August 26, users holding crypto-credits such as Binance Coin (BNB), Ethereum Classic (ETC) or Tether (USDT) will be able to do so through the new service called Binance Lending to lend portions of their assets and receive interest in return.

Initially, users will be able to sign up for the new service from August 28 through August 29, with a 14-day fixed term loan. BNB has the highest annual interest rate of 15%, while USDT and ETC each have an annual interest rate of 10% and 7%, respectively.

The first credits will be awarded starting August 29th and run until September 10th. As Binance notes, interest rates are due immediately after the loan expires. The annual interest rates for future time windows are adapted to the respective market situation and to the reception of the users, accordingly, the first period is still a kind of test phase.

As Binance explains, the credits are portioned into specified units (Lot Size), whereby a single user can only lend a maximum amount (individual cap) to the respective crypto currency. From annual interest, which is downscaled over a period of 14 days, and the lent amount then yields the corresponding interest income.

In this context, Binance has today launched a “User Agreement for Lending” on its own website stating that the lending credits will be used for Binance’s borrowing service.