Earn up to 15% interest on BNB, Tether, and Ethereum Classic on Binance 🚨 This article is 5 years old...
Earn up to 15% interest on BNB, Tether, and Ethereum Classic on Binance
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Updated: Mar. 20, 2020 at 2:09 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance announced the launch of a lending platform, offering up to 15 percent annualized interest rate for 14-day fixed-term BNB, USDT, and ETC based instruments.
Crypto lending comes to Binance
Binance, one of the largest cryptocurrency exchanges in the world, officially announced the launch of its lending platform. According to the company’s Aug. 26 blog post, the platform will launch on Aug. 29 as a value-added service aimed at Binance users who hold “idle digital assets.”
The lending products will initially be available for subscription starting from 6:00 am UTC on August 28, 2019, to 12:00 am UTC on August 29, 2019, on a first-come, first-served basis. Only those with Binance “Level 2” verification or beyond are eligible to lend, meaning anonymous accounts cannot participate in the offering.
#Binance Will Launch Lending Platform: 14-Day Fixed Term $USDT, $BNB and $ETC Lending Products Available for Subscriptionhttps://t.co/i3LKCvhLUq pic.twitter.com/pxsBaXZnWu
— Binance (@binance) August 26, 2019
Binance Lending will enable users to lend their Tether (USDT), Ethereum Classic (ETC), and Binance Coin (BNB) holdings and earn interest. The company’s blog post stated that all of the lending products will have a 14-day fixed maturity term, with the interest rates for BNB, USDT, and ETC set at 15, 10, and 7 percent, respectively.
Binance diversifying its offer
The exchange set a total subscription cap at 5 million USDT, 200,000 BNB, and 20,000 ETC. According to the blog post, if all of the products get fully subscribed, total interest of 19,178 USDT, 1,150 BNB, and 53 ETC would be paid out.
The interest rates Binance would pay for those products would be 1,150 BNB, 19,178 USDT, and 53 ETC, it said in the blog post, all of which are currently worth around $50,000. To limit the supply, all user accounts will have a hard cap set for all of the products—1 million USDT, 500 BNB, and 1,000 ETC.
Changpeng Zhao, the CEO of Binance, said that the interest rate for each product is guaranteed. “Your crypto balance will always grow, regardless of how the market moves,” he added.
Yet, this raises the question as to why Binance would offer practically free money to users. Whether this is a marketing play or a profitable lending business is still unclear.
The company said more Binance Lending products will be released soon once the company evaluates the demand for new coins and tokens. However, there is a possibility that the interest rates will change as new tokens are added. Binance’s blog post stated that the interest rates for all of the upcoming phases will be adjusted “based on market reception of the initial phase,” leaving the door open for an increase (or decrease) in rates.
BNB Market Data
At the time of press 2:09 am UTC on Mar. 20, 2020, BNB is ranked #9 by market cap and the price is up 14.67% over the past 24 hours. BNB has a market capitalization of $1.84 billion with a 24-hour trading volume of $406.3 million. Learn more about BNB ›
Crypto Market Summary
At the time of press 2:09 am UTC on Mar. 20, 2020, the total crypto market is valued at at $168.91 billion with a 24-hour volume of $164.12 billion. Bitcoin dominance is currently at 64.73%. Learn more about the crypto market ›
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Ethereum Classic
$27.6134
Ethereum Classic (ETC) is a continuation of the original Ethereum blockchain – the classic version preserving untampered history prior to the July 2016 DAO hack..
Tether
$0.99941
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
