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Popular crypto exchange Binance has announced the launch of its first-ever crypto lending product which is scheduled to go live on Aug. 28, 2019.

Today, the exchange officially revealed the product, Binance Lending, which will enable Binance coin (BNB), Ethereum Classic (ETC) and Tether (USDT) holders to lend their assets for a specific amount of time and earn interest through this new service.

“Binance will launch our Lending Platform at 2019/08/29 6:00 AM (UTC), as a value-added service to Binance users who hold idle digital assets.”-read the post.

According to the announcement, users will be able to subscribe for the service starting from 2019/08/28 6:00 AM (UTC) to 2019/08/29 0:00 AM (UTC). The subscription format is based on a first-come-first-served system.

The initial lending period is set to 14 days. The annualized interest rates will be 15% for BNB holders, which will be the highest rate, USDT will have a rate of 10%, and ETC will have a rate of 7%.

source: Binance

The first interest calculation period will start from 2019/08/29 0:00 AM (UTC) to 2019/09/10 23:59 PM (UTC).

Binance also notes that the interest payout time will take place immediately after the loan term matures. The exchange stated that the annualized interest rates for the following stages will be adjusted depending on how the market will react to its initial phase.

Binance has provided an example of how their product would work:

“If User A subscribes to 10 lots of BNB Lending (total lend of 100 BNB), the interest earned at maturity date will be 0.057534 BNB x 10 = 0.57534 BNB.”

Binance also updated their Lending FAQ through the addition of a new section called “Binance Lending Service Agreement,” in which it is stated that the Binance Lending assets “will be used in cryptocurrency leveraged borrowing business” on their platform.

BNB balances committed into Lending products will be included in each user’s daily BNB balance calculations for Binance Launchpad and other daily calculations as mentioned in the Daily BNB Balance Calculation Mechanism Update.”

Featured Image: Financial Times

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