Binance Lending: Better Than a Bank?

Date: 
August 29, 2019
Read time: 
2 minutes

How much do you earn from your bank’s saving account? 3%? How much can you earn, on average, if you invest in a portfolio of safe stocks -- 10% a year? Well step up, step up, one and all -- with Binance’s lending program you can earn as much as 15%!

How much do you earn from your bank’s saving account? 3%? How much can you earn, on average, if you invest in a portfolio of safe stocks -- 10% a year? Well step up, step up, one and all -- with Binance’s lending program you can earn as much as 15%!

Binance sure is moving full speed ahead. They plan to roll out future’s trading with 20x leverage. Now this crypto lending program. It’s all quite exciting. Let’s stay tuned!

In a bid to garner new customers (and their deposits), one of the world’ largest cryptocurrency exchanges -- Binance -- launched a cryptocurrency lending business.

In a fresh announcement on Monday August 26th, Binance announced that their new Binance Lending program will be open for subscription starting from 6:00 UTC on Aug. 28 -- it’ll be a first-come, first-served basis -- so get in quick!

Binance does not support any fiat currency, so no surprise that you won’t be able to lend or borrow fiat. But you will be able to lend your bags of U.S. dollar-pegged USDT, Ethereum Classic (ETC) and Binance’s very own BNB cryptocurrency. Then, you’ll be paid interest from Aug. 29 to Sept. 11.

The interest is calculated as an annualized interest rate with a 14-day fixed maturity term. If you lend out BNB, you’ll get 15% -- if you lend out USDT you get 10% -- and if you lend out your stash of ETC then you’ll earn 7% -- which is still quite a healthy amount.

But again, you need to act quick. Binance said they will cap the subscription at 200,000 BNB, 5 million USDT and 20,000 ETC. That’s the max they will hold and lend out. And if that maximum is reached then Binance will pay out interest payment of 1,150 BNB, 19,178 USDT, and 53 ETC.

Another note to keep in mind, your account will have an initial hard cap for BNB- USDT- and ETC. Those hard caps are: 500 BNB, 1,000,000 USDT, and 1,000 ETC.

Are you New to Cryptocurrency? Get Started Investing Today.

For all you ETC holders, I’ll also report that Binance stated that beginning from August 27th, the annualized margin borrowing interest rate for ETC will rise from the previously 7.3 percent to 14.6 percent.

What if you don’t own any BNB or ETC? And you don’t want to sell your bags of tokens for USDT? Well, Binance also mentioned that it will be “constantly evaluating new coins and tokens to support as lending products based on demand.” New crypto lending products will be revealed weekly on Mondays -- then on Wednesday they will become available for subscription. 

So if you’re debating about cutting your altcoin bags loose -- maybe consider holding onto them for a bit longer? If they make it into Binance’s lending platform -- the prices may change too.

Binance sure is moving full speed ahead. They plan to roll out future’s trading with 20x leverage. Now this crypto lending program. It’s all quite exciting. Let’s stay tuned!

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

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