Popular cryptocurrency exchange Binance has released a crypto lending platform that allows users to earn a significant amount of guaranteed interest on their crypto holdings beyond trading.
The new offering, dubbed “Binance Lending,” allows holders of BNB token, Ethereum classic (ETC) and Tether (USDT) stablecoin earn interest on their funds. The service will be available on a first-come, first-served basis, starting from 6:00am UTC on Aug. 28 to 12:00am UTC on Aug. 29.
Binance users can decide the number 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, it added.
Binance’s CEO, Changpeng Zhao, explained in a recent tweet that all lending at Binance goes to margin borrows who have to pay interest on their positions, which makes it easy to guarantee a fixed interest payout to lenders.
The launch is another move of Binance in its bid to diversify its business lines to attract and retain users weeks after it formally rolled out margin trading and borrowing in July and revealed plans to add futures trading on its platform.