Binance NFT launches crypto-currency lending business

The NFT marketplace from the giant Binance now allows you toborrow from ETH at immobilizing from tokens from large collections such as BAYC and Doodles.

Binance NFT has intro­duced a new fea­ture called NFT Loan and allow­ing its users to bor­row cryp­tocur­ren­cies, ini­tial­ly ethers.

In return, bor­row­ers must deposit a valu­able NFT as col­lat­er­al. The NFT Loan prod­uct cur­rent­ly sup­ports tokens from the “pre­mi­um” Bored Ape Yacht Club, Mutant Ape Yacht Club, Azu­ki and Doo­dles collections.

Accord­ing to the service’s pre­sen­ta­tion page, the inter­est rate on loans is 7.9% p.a. with a loan-to-val­ue ratio of between 40% and 60%.

The lend­ing NFT is a prac­tice that’s becom­ing more and more wide­spread in the ecosys­tem. The Blur mar­ket­place recent­ly unveiled Blend, a P2P lend­ing solu­tion for non-fun­gi­ble tokens. More recent­ly, the NFT lend­ing pro­to­col designed by French com­pa­ny Kairos raised $1 million.

Open in 2021, Binance NFT this month announced the immi­nent arrival of sup­port for NFT Ordinals.

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