<p class="is-style-lead">Binance is preparing to roll out a new product that would enable non-fungible token (NFT) holders to borrow crypto against NFT assets.&nbsp;</p>



<h2 class="wp-block-heading" id="binance-nft-loan-supports-only-ethereum-borrowing">Binance NFT loan supports only ethereum borrowing </h2>



<p>Crypto exchange giant Binance will launch the Binance NFT loan service on May 26, according to an <a href="https://www.binance.com/en/support/announcement/binance-nft-launches-nft-loan-b2ac4bcafe8445ab98bf198aaa60ec60?utm_source=nft-tw&amp;utm_medium=social&amp;utm_campaign=loan" target="_blank" rel="noopener">announcement</a>.</p>



<p>The new product, which comes nearly two years after the <a href="https://crypto.news/binance-nft-market-live-limited-edition-collectibles-sale/">unveiling</a> of the Binance NFT marketplace,  will support <a href="https://crypto.news/price/ethereum/">ethereum</a> loans for now, along with high-valued NFT collections like Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club (MAYC), and Doodles. </p>



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<p>Part of the benefits offered by Binance includes zero Ethereum gas fees, which would encourage users to utilize the new product. </p>



<p>Also, Binance is offering users a 70% discount on borrowing interest rates per annum (p.a.), with the standard interest rate slashed from 11.2% to 3.36%. This promotional rate runs from the launch date until further notice. </p>



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<p>According to the Binance NFT <a href="https://www.binance.com/en/nft/loan" target="_blank" rel="noopener">website</a>, loan-to-value ratio for the supported NFT collections ranges between 40% and 60%, with BAYC being the highest, and Doodles being the lowest. </p>



<p>The announcement added that the Binance NFT loan product will support more assets for borrowing and NFT collateral options in the future. </p>



<p>Binance&#8217;s entrance into the NFT lending space comes shortly after NFT marketplace Blur, <a href="https://crypto.news/blur-launches-blend-a-nft-perpetual-lending-protocol/">launched</a> Blend. Unlike the Binance NFT loan service, the Blend protocol allows the lender to determine the interest rates and loan-to-value ratios.&nbsp;</p>



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Binance enters the NFT lending market with loan service

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