Crypto exchange Binance has ventured into a crypto lending service, according to the company statement. The lending service will be launched on Aug. 28, 2019. Binance to Start Crypto Lending Service to Attract Customer Deposit.
Binance Coin (BNB), Ethereum Classic (ETC) and Tether (USDT) holders will be able to lend and receive interest through the latest Binance Lending service.
The lending products will have an initial period of 14 days and BNB will have the highest annualized interest rate of 15%, whereas the USDT and ETC rates are 10% and 7% respectively.
The first calculation period for interest will be between Aug. 29 and Sept. 10. Binance has added that interest payment time will be instantly following the maturity of the credit term.
|Digita lAsset||Total Subscription Cap||Individual Cap||Annualized Interest Rate||Lot Size||Interest Per Lot at Maturity|
|BNB||200,000 BNB||500 BNB||15%||10 BNB||0.057534 BNB|
|USDT||10,000,000 USDT||1,000,000 USDT||10%||100 USDT||0.383561 USDT|
|ETC||20,000 ETC||1,000 ETC||7%||1 ETC||0.002685 ETC|
Binance sets a complete subscription limit of BNB 200,000, USDT 5 million and ETC 20,000. If all the products planned get fully subscribed, Binance would pay out 1,150 BNB, 19,178 USDT, and 53 ETC interest, worth approximately $50,000 at press time.
Almost every user account on Binance will have an initial hard cap for denominated products known as BNB, USDT, and ETC, at 500 BNB, 1,000,000 USDT, and 1,000 ETC, respectively.
Binance said it would raise the annualized margin borrowing interest rate for ETC from 7.3 percent to 14.6 percent as of August 27.
In another move, it announced that it will give all its hacked users a free, lifetime VIP membership account after the leakage of Know Your Customer (KYC) information.