Binance NFT to Launch Loan Service, Initially Supporting Ethereum

Increase NFT flexibility

Major crypto asset (virtual currency) exchange Binance’s NFT (non-fungible token) electronic market “Binance NFT” announced on the 25th that it will start a loan (financing) service.

We are excited to announce our latest product, the Binance NFT Loan.

Get instant liquidity with your selected blue-chip NFTs.

Instant Borrowing
Zero Gas Fees
Liquidation Protection
Competitive Interest Rate

Read the blog for more details:

— Binance NFT (@TheBinanceNFT) May 25, 2023

The service will start at 20:00 on the 26th of Japan time. Users will be able to initially borrow Ethereum (ETH) with NFTs as collateral. Binance NFT explained that the service aims to increase the flexibility of NFTs by allowing them to be leveraged without having to sell them.

The NFT collections available for collateral are: The options for collateral assets and digital assets that can be borrowed will be increased in the future.

• Bored Ape Yacht Club (BAYC)
• Mutant Ape Yacht Club (MAYC)
• Azuki
• Doodles

This service is an over-collateralized loan. Users must ensure that the value of the collateral NFT (bottom price) exceeds the value of the borrowed virtual currency or digital asset.

The collateral rate, the amount of Ethereum to be supplied, and the standards for liquidation are set for each NFT collection. Below is a table in the “FAQ” section of the official website, which shows, for example, BAYC has the highest supply of Ethereum and the highest amount borrowed against collateral.

Source: Binance

What is Binance NFT?

Binance NFT is one of Binance’s products and will launch in June 2021. It aims to be a one-stop platform for safe trading, staking and lending.

Recently, it announced plans to support “Bitcoin Ordinals,” the equivalent of NFTs on Bitcoin (BTC). Ordinals has been getting a lot of attention in the cryptocurrency space lately.

connection: Binance NFT to support Bitcoin Ordinals

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Regarding NFT-based lending, Blur, an NFT electronic marketplace for professional traders, launched a P2P perpetual lending protocol, Blend, this month. He explained that the purpose of Blend is to provide new lending services, create opportunities to earn interest rates 10 times higher than existing DeFi (decentralized finance), and improve the liquidity of NFTs.

connection: NFT electronic market “Blur” for professional traders, P2P unlimited loan service started

According to ‘The Block’ analysts, Blend’s NFT lending market is growing rapidly, and if it continues to pioneer this new space, a market-driven approach could change the lending landscape. It is said that there is

connection: “NFT as a national growth strategy” Interview with Liberal Democratic Party Digital Society Promotion Headquarters Masaaki Taira

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