Popular cryptocurrency exchange Binance will launch its first cryptocurrency lending products on August 28, 2019. The news about the new lending service was published in an official announcement today.
Earning interest income for lending out holdings.
With its new lending platform called Binance Lending, Binance users will be able to grow their funds by earning interest income for lending out their holdings over a specific period of time.
The lending products are open for subscription from August 28 till August 29. All three digital assests have both a total subscription cap as an individual cap for users.
According to the Binance Lending Table, BNB will have the highest annualized interest rate of 15% while the rates for USDT and ETC amount to 10% and 7%, respectively.
Example: If User A subscribes to 10 lots of BNB Lending (total lend of 100 BNB), the interest earned at maturity date will be 0.057534 BNB x 10 = 0.57534 BNB.
The first interest calculation period will be from August 29 till September 10 and the interest payout time will take place immediately after the loan term matures. Binance stated that the annualized interest rates for upcoming phases will be adjusted based on market reception of this initial phase.
Cryptocurrency lending is a simple way to earn interest on your holdings and Binance Lending will be a value-added service to many Binance users.
But Binance isn’t the first cryptocurrency exchange to experience with lending products. Singapore based exchange Bitrue has build up a good reputation with their “Power Piggy”, where users can earn 7.3% annual interest on different cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP).