Binance is adding CTK, the native token of CertiK blockchain and smart contract verification platform, as an additional asset available to borrow on its loans platform.
Binance has recently supported and delisted several tokens as the largest cryptocurrency exchange continues to cement its dominant market position. This development also comes just as competition in the crypto lending field is heating up.
Meanwhile, the exchange has removed Bitcoin Cash (BCH) from the list of its collateral options, nearly six months after the cryptocurrency was added to ‘Binance Loans.’ The influential venue launched the service to allow users to leverage existing crypto assets as collateral for loans. The major venue has originally joined the ranks of other crypto exchanges offering interest-bearing crypto savings accounts in August 2019.
All Binance registered users are eligible to borrow on its loans that cover several cryptos, including BUSD and USDT. Binance Loans further support a range of varying loan periods, with interest calculated on a daily basis, as well as the use of several coins as collateral, including BTC and ETH.
The lent coins are used in cryptocurrency leveraged borrowing business on Binance.com, which already offers margin trading.
Binance Diversifies Its Business Lines
While loans terms range from 7 to 90 days, borrowers are given an overdue period of three days, during which they will be charged three times the regular interest. However, those who fail to repay their loans after the grace period expires will see their collaterals liquidated to pay off crypto debts.
Binance Loans was another move of Binance in its bid to diversify its business lines to attract and retain users. Furthermore, it comes months after it rolled out margin trading, lending and revealed plans to add futures trading on its platform.
While its staking service is still in its infancy, Binance already allows its users to earn interest on their cryptocurrencies through providing loans to those interested in borrowing digital assets.