Binance launches NFT secured lending service

The largest cryptocurrency exchange Binance launched a servicewhich will allow you to receive loans in cryptocurrency secured by unique NFT tokens. This is the first service that makes it possible to use NFT not only as a means of investing and collecting, but also as collateral for obtaining liquidity.

The service is available to users on the Binance NFT platform, which was launched in June 2021. Users can select an NFT from their collection and send it to a special smart contract that will store it until the loan is repaid. The user then receives an amount in Ethereum in the amount of 40-60% of the estimated value of the NFT. The loan term is 30 days, and the interest rate is 3.39% per annum. There will be no gas fees in Ethereum.

At the moment, the service only supports NFTs created on the Binance Smart Chain and Ethereum blockchains, and loans are issued only in Ethereum. As collateral, Binance is interested in NFTs from the collections of Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles. In the future, Binance plans to expand the list of supported NFT collections and cryptocurrencies.

Binance states that the NFT-secured lending service aims to grow the NFT ecosystem and meet user needs. “We want to give users more options to manage and benefit from NFT assets,” said Changpeng Zhao, CEO of Binance.

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