Binance’s NFT Marketplace Has Introduced NFT Loans Feature

Binance’s NFT marketplace is launching NFT loan feature for users to secure ETH loans

Binance’s NFT Mar­ket­place has launched an NFT Loan fea­ture, allow­ing users to bor­row ETH using their NFTs as col­lat­er­al with­out sell­ing them. The loans, acces­si­ble with select­ed high-pro­file NFT projects, offer com­pet­i­tive inter­est rates and zero gas fees, enabling users to unlock liq­uid­i­ty quick­ly and eas­i­ly. Users must ful­ly under­stand the asso­ci­at­ed risks before using the ser­vice despite its advan­tages. These include price volatil­i­ty, liq­ui­da­tion risk, and loan term changes.

The new ser­vice, called Binance NFT Loan, “will allow peo­ple to use blue-chip NFTs to bor­row cryp­to, start­ing with ETH, intro­duc­ing the ben­e­fits of DeFi to the Binance NFT com­mu­ni­ty,” Binance said in a press release. Accord­ing to the plat­form, the tool offers com­pet­i­tive inter­est rates, instant liq­uid­i­ty, zero gas fees, and liq­uid­i­ty protection.

Accord­ing to the plat­form, the tool offers com­pet­i­tive inter­est rates, instant liq­uid­i­ty, zero gas fees, and liq­uid­i­ty pro­tec­tion. It uses a “Peer-to-Pool” approach where Binance acts as the loan pool.

The fea­ture, launch­ing on Fri­day, will ini­tial­ly sup­port Ethereum loans only and NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Azu­ki and Doo­dles col­lec­tions. The plat­form plans to roll out new options in the future.

Mayur Kamat, head of prod­ucts at Binance, said in a press release that the new fea­ture will pro­vide new liq­uid­i­ty options for hold­ers, “allow­ing them to par­tic­i­pate in the mar­ket with­out hav­ing to let go of their pre­cious NFTs.”

“We’ve added a host of fea­tures that make it a one-stop shop for NFT trad­ing and finan­cial ser­vices for our com­mu­ni­ty,” said Kamat.