Binance has announced that it will be launching its crypto lending service – Binance Lending on August 28. The service is targeted at users who “hodl” their digital assets without trading or taking advantage of price swings.
In the first phase of the lending service, holders of Binance Coin (BNB), Tether (USDT) and Ethereum Classic (ETC) will be able to earn interest from lending their idle funds over a specific period of time.
The service is subscription based and will be available for subscription on a first-come-first-serve basis from August 28 to August 29. For the first phase of Binance Lending, the BNB, USDT, and ETC lending products will have a 14-day initial period (from August 29 to September 10) and interests will be paid once the loan term matures.
Talking about interest rates, BNB will have the highest rate of 15% per annum while USDT and ETC have interest rates of 10% and 7%, respectively. Subsequently, the annualized interest rates will be adjusted based on how the market reacts to this initial phase.