<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>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/bitcoin-frogs-outpaces-bored-apes-as-the-most-popular-nft/" class="cn-block-related-link__link">
            Bitcoin Frogs outpaces Bored Apes as the most popular NFT        </a>

    
</div>


<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>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="BINANCE IS DONE. THE US GOES POSTAL." width="1020" height="574" src="https://www.youtube.com/embed/cvpTlhCj8dA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<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>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/bitcoin-becomes-second-largest-nft-chain-by-volume/" class="cn-block-related-link__link">
            Bitcoin becomes second-largest NFT chain by volume        </a>

    
</div>

Binance enters the NFT lending market with loan service

Table of Contents

crypto.news

Other articles published on May 25, 2023

NFT Community Awaits Another Milady Pump From Elon Musk

Be Early To The Next 100x With These 5 Crypto Launchpads

What is DeFi 2.0? – A Beginner’s Guide

Pakistan’s Pioneering Journey Towards an AI-Driven Future: A Million AI Trained IT Graduates by 2027

Japan to Enforce Cryptocurrency Anti-Money Laundering Laws in June, Report Find

The $DONS Recap 25.05.2023

Join our free newsletter for daily crypto updates!