Binance is launching an offer of cryptocurrency loans against NFT tokens
The world's largest digital currency trading exchange introduces a new service for its customers.
Cryptocurrency loans are nothing new in the digital currency sector, however, improved solutions and more advanced offers from entities that provide cryptocurrency trading services are currently appearing on the crypto market. One of such entities is certainly the Binance exchange, which recently announced that it is launching a new lending system based on cryptoassets. Platform customers will be able to take advantage of the latest financial product by collateralizing their NFTs.
Binance launches NFT Loan system
The world's largest exchange for trading digital currencies - Binance - is currently expanding its offer with cryptocurrency loans, which is based on the "NFT Loan" program. As reported in a post published on their blog, from May 26, all clients of the exchange can obtain a loan of Ether (ETH) against their non-fungible tokens (NFT).
It is worth adding, as the company informs, that it is allowed to use only a certain category of tokens from a limited number of collections with a higher market capitalization than other projects. We are talking about Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Doodles and Azuki. However, Binance has already announced at this stage that in some time the exchange will allow wider use of NFT from other cryptocurrency projects.
Binance describes its new trading tool as a very attractive trading method for investors in the digital currency sector, pointing to several key benefits. First of all, Binance representatives mentioned the extremely favorable interest rate, instant liquidity and protection in terms of its maintenance, but also the lack of gas fees.
Binance and NFT
The cryptocurrency platform managed by Changpeng Zhao periodically introduces new trading solutions, proving to the community focused around the cryptocurrency industry that it follows current market trends and does not lag behind the constantly growing competition.
Therefore, in early April 2023, Binance launched the Bicasso tool, which is designed to generate graphics using artificial intelligence, which are immediately minted in the form of NFT.