Major cryptocurrency exchange Binance just took another step in expanding their services as they're entering the crypto lending business.
"Binance Lending products for BNB and USDT will be available for subscription starting from 6:00am UTC on August 28, 2019 to 12:00am UTC on August 29, 2019, on a first-come, first-served," the company said on Monday, adding that "Users can subscribe their funds to selected Binance Lending products and accrue interest over time."
The annualized interest rate for the initial BNB lending product, which has an initial 14-day period, is set at 15%, according to the announcement.
The designated hard cap per account for BNB- and USDT-denominated lending products will be initially set at 500 BNB and 1,000,000 USDT respectively.Watch the latest reports by Block TV.
"Binance users can decide the amount of tokens they want to lend at the time of subscription and will be able to retrieve funds with guaranteed interest after the designated subscription period," the exchange claims, adding that it will be evaluating new coins to support as lending products based on demand.
As reported, the crypto lending market has been experiencing an increasing interest in the past 12 to 18 months. More and more HODLers are using their digital asset holding as collateral for fiat currency loans. While the reasons to take out loans are myriad, one of the biggest arguments for taking out a crypto-backed loan is that it can help investors reduce their crypto tax bill.
In the market, there are multiple crypto lenders such as BlockFi, Celsius Network, Nexo, EthLend, Genesis, Maker and others.
According to a recent report by crypto startup Graychain, crypto lending is already more than USD 4.7 billion sector. However, the estimated annual interest revenue is only USD 86 million.